Britain has the world's second biggest fall in property prices in 2008.

Latvia - property prices fell by 33.5%
United Kingdom - property prices fell by 14.7%
Iceland - property prices fell by 14%
United States - property prices fell by 12.1%
Ireland - property prices fell by 9.1%
Estonia - property prices fell by 7.5%
Norway - property prices fell by 7.5%
Denmark - property prices fell by 7%
Singapore - property prices fell by 6.5%
Portugal - property prices fell by 6.3%
Canada - property prices fell by 6.2%

The sample population was 40 countries. An interesting observation would be that out of these 11 countries; Latvia, Iceland & Ireland have officially called themselves bankrupt. If property slump would have been a major and/or sole ingredient to measure a failed state then as of december 31, 2008 US & UK would have been a failed state.