The July 2009 issue is likely to be the Polestar-printed publication's last edition, after BBC Magazines entered into consultation with 17 staff this week.
BBC Good Homes, which is in its 11th year, was at its most popular in 1999 when its ABC circulation hit 151,763 for the six months from July to December.
Its ABC for June to December 2008 was 97,725, down 23% on the previous year.
Peter Phippen, managing director at BBC Magazines, said: "I am very sorry to announce that after much deliberation we are proposing to close BBC Good Homes magazine.
"As the last set of ABC figures showed, the declining housing market has had a particularly adverse effect on this title and we cannot see how this might change in the near future.
"With a remit to deliver profit back to the BBC, we feel it is not tenable to publish this title at a loss. We have given this news to the Good Homes team and we are doing all we can to help them find other roles within, or outside, BBC Worldwide."
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