Source: http://www.guardian.co.uk Nationwide said prices fell 14.6% over the past 12 months to £158,872, and dropped 1.4% in the month to October - the 12th monthly fall in a row.  Economists have predicted that house prices have a lot further to fall. Howard Archer at IHS Global Insight, said: "Faster rising unemployment, major concerns over recession and widespread expectations that house prices will come down further seem set to depress housing market activity and prices for some considerable time to come."  Nationwide is the first major lender to report on the state of the market in October and many had hoped that transactions had picked up after the Bank of England cut interest rates by 50 basis points, to 4.5%, earlier in the month.  However, analysts said that lower interest rates were not helping free up the mortgage markets. Ed Stansfield, property economist at consultants Capital Economics, said: "We expect the Bank of England will cut interest rates to 1%. With unemployment rising and expectations that house prices have much further to fall still widespread, lower interest rates will not stimulate housing demand. Lower interest rates will also do nothing to loosen mortgage lending criteria."  Bank of England mortgage data this week showed that mortgage approvals in September were 67% down on the same month a year ago. Banks and building societies have raised interest rates on mortgages as the credit crunch worsens.  Liberal Democrat Treasury spokesman, Lord Oakeshott, said: "British house prices and house builders are being hammered by rising unemployment, as in the 1990s recession. The government must empower councils and housing associations to spend the £8bn affordable housing allocation now on buying unsold homes and land at bargain basement prices."

Source: http://www.findaproperty.com Affordability continued to be an issue, said the report, with average earnings having risen at a slower rate than the Retail Price Index. Added to that, the increased costs of fuel (40 per cent) and food (11 per cent) over the past year have led to a significant downfall in householder's discretionary income.  But despite the ongoing decline in house prices and available finance, the Halifax report also offered up some happier news. The house price to earnings ratio - a key measure of affordability - is improving significantly, having now fallen by 16 per cent from its peak in July 2007. Housing market activity was also showing signs of improvement, this was the third consecutive month that approvals for house purchase had remained broadly unchanged. However, the quarterly picture wasn't quite so positive, with approval figures having dropped by 25 per cent between Q2 and Q3 2008. Commenting on the report, Martin Ellis, chief economist at Halifax, said: "Housing market conditions remain challenging in the face of the significant pressures on householders' incomes and the reduction in the availability of mortgage finance since last summer. "But housing affordability is improving significantly. The house price to average earnings ratio has fallen below 5.0 for the first time in four and a half years. We expect a further improvement in the ratio over the coming months."

Source: http://www.homemove.co.uk The Halifax has today reported that house prices are continuing to decline with a 2.2% fall recorded last month. The latest fall takes the average home to £168,176, almost £30,000 less than a year ago.  While this sounds like good news for first-time buyers, the fact still remains that it is increasingly difficult to obtain a mortgage without a hefty deposit, since the credit crunch has meant lenders are only willing to lend to those with an excellent credit rating or a large amount of equity in their properties. Consequently, a new affordability challenge for first-time buyers is the need for a higher deposit, even though house prices are now about 12-15% cheaper. According to the Council of Mortgage Lenders (CML), almost 50% of all first-time buyers under the age of 30 received financial help getting on the property ladder in the second quarter of this year.  The absence of the 100% mortgage has meant that first-time buyers need financial assistance in finding a deposit, and this is coming from relatives.  The CML's research found that the average first-time buyer had to put down a deposit of £19,000 during the second quarter of 2008 - up from £14,500 the year before.  According to the Council, those most likely to need financial assistance from their parents live in London, the South East of England and Northern Ireland.  However, the bank of mum and dad my not be readily available over the next few months since the economic downturn has meant that households are tightening their purse strings and as house prices continue their downward spiral, these parents will see the value of their own homes decline. The CML concludes by saying if this source of help for first-time buyers dries up, then opportunities for potential buyers to enter the market could be severely limited, and we may see their numbers decrease significantly beyond what are already record low points.

Source: http://www.independent.co.uk Housing waiting lists increased by an average of 66 per cent between 2002 and 2007 in the top 10 areas of England for second homeownership, according to the National Housing Federation. The group said nearly 240,000 properties in England were registered as second homes, but demand for property from people outside some regions had pushed prices to unaffordable levels for locals. The number of people on waiting lists for affordable housing increased by 115 per cent in the City of London, where a quarter of properties are owned by someone who does not live there full-time. The majority of areas affected are rural. Waiting lists for example rose more than 80 per cent in North Cornwall and South Lakeland in the Lake District. The federation's chief executive David Orr said: "People have every right to buy a second home. But we must recognise that, in many cases, this has priced out local people."

source:netrent.co.uk

There are over 800,000 landlords in the UK. It is about time that landlords started to make their concerns known to Government and the banks. It is time for landlords to demand action to support an industry that owns around 1 in every 9 homes in the UK.