Top end homes throughout the country have reportedly been declining in value over recent months, with a year-on-year assessment showing a steady decline as well. Since 2009 prices have reported fallen a total of 1.5% for high-end homes valued at over £1 million throughout the country, with a 2.4% drop in value being registered for prime real estate in London. Wales is facing difficulties in particular with a reported 5.8% drop in its own prime property values over the past year – a major blow to those seeking financial refuge in wealthy realty.

While this may not seen like much of an issue to most individuals keeping an eye on the property market for personal purchases or investments it is an indicator that the economy as a whole is weakening significantly. This is particularly true for London where most have generally considered the top-end property market to be relatively untouchable given the level of overseas property interest in prime London locations. As of late, however, a combination of both declining economic stability as well as higher tax rates along with fluctuating residential and commercial mortgages throughout all of the UK property market have played a major negative role as a whole.

While it may still remain true that the majority of the prime property market will retain significant value and fluctuate less than the general market as a whole it is to be expected that the market will, indeed, face a downturn much like the rest of the country. For those interested in high-end markets London will still be the safest bet, however overall value cannot be expected to be retained in the coming quarters.

House prices in September dropped at the fastest rates seen since 1983, plummeting roughly 3.6 percent and engendering greater fears of what may be in store in the coming months. Lowering the average house price throughout the UK from its August height of £168,124 to £162,092 home owners can expect to see an average drop of roughly £6,000 on their overall home price.

While this slide has been anticipated by many going into the latter months of the year the severity of the shift has been somewhat unprecedented and caught many people off guard. This is particularly true for many who have recently sought out a re-mortgage for a secondary home purchase to lock-in a decent fixed-rate loan while they could for future months.

While as short as one month ago this may have been an effective buying scheme the sliding housing costs now mean that the majority of purchases even on fixed-rate mortgages may lose their favourable interest rate obtained through a substantial deposit and still stick property owners with higher monthly payments that would have been avoided should the market have continued developing,

Many experts agree that given this among other indicators further dips in property value are likely, especially going into winter months where property selling tends to hit a low point. Additionally this is being seen by many as a strong indicator that the dreaded double-dip has begun and many speculators in the UK property market as a whole should remain cautious when considering properties to invest in as even many higher-end real estate is not immune to the price fluctuations.

With costs of many properties throughout the country constantly in flux one of the safest locations for many home owners to purchase properties has regularly been near universities. This has typically been due to a combination of both proximity to high-valued university buildings as well as the high potential for rooms or properties as a whole to be rented and let out to students.

Given the high potential for university properties to both retain and regularly gain value a large number of buyers have turned more and more to these locations for purchases, especially with prices falling in some less urban areas as of late. This case is particularly true as of late where families with enough disposable income can secure decent fixed-rate mortgages based on the continued low interest rates for a variety of locations. Even with many lending regulations making it significantly more difficult for a number of people to secure loans this rise in interest allows buy-to-let mortgages in particular become more attractive due to their high potential to retain value in both the near and far future.

This trend has become particularly true for parents of children attending university in many areas, with families seizing upon the opportunity for a profitable investment while at the same time providing a home for their children during the course of their students. This has proven true for both domestic and international buyers alike, with families from many foreign countries purchasing university flats for their own children looking to attend school abroad. This has led to a surplus in buyers even during current conditions where many buyers have been more reluctant than usual to commit to a purchase – particularly for multi-bedroom flats that have the potential to be rented out to multiple university students for various streams of income.

The Royal Institute of Chartered Surveyors (RICS) released an announcement recently that they feel house sales throughout the country will rise through the remaining three months of 2010, despite the fact that house prices are on the fall and mortgages remain difficult to obtain. In fact, a total of 32% of all surveyors indicated a drop in overall property value over the past month of August, indicating a slowing of the market in a large number of areas.

Nevertheless despite many negative factors working against the market many feel that some of the conditions will actually turn out to be favourable for sales rates. This is due to the fact that even though mortgages are difficult to obtain the current low mortgage rates being offered if you could obtain one for both tracker and fixed-rate mortgages combined with other benefits for first-time buyers will play a big factor once house prices finally drop down into a range that is considered more reasonable and suitable to the current economic conditions in many areas.

One of the primary reasons that the number of first-time buyers throughout the country has dropped off in recent years is due to the fact that house prices have simply skyrocketed beyond an attainable range. This combined with various credit difficulties and job insecurities has worked to create a wary investment group and encourage individuals to postpone the purchase of a home in lieu of much more affordable rental options.

Many of the issues seen over the past months in particular, however, are expected to be resolved as house prices drop back into a much more attainable range and thus encourage many individuals to get into the market they may have avoided otherwise – good news for property owners looking to sell their homes and real estate developers alike.

The question on many people’s minds these days is what does the future have in store for the UK property and housing market, with fears of a double-dip on the way despite the low interest rates being set and other incentives being offered by some developers to try and purchase homes in newly built areas. Even some banks have tried to maintain highly competitive tracker and fixed-mortgage rates despite the need to maintain heavier regulations at the same time, creating a somewhat hostile and unpredictable market for many individuals.

While this is generally seen as quite bad news on a number of fronts some experts are beginning to believe that hope lies around the corner in a number of ways, the least major of which is the fact that they foresee first-time buyers being able to reenter the market soon as primary purchasers should house prices fall low enough to enable them to get into their desired locations. This is somewhat of a good sign for many that have been increasingly concerned as of late as the skyrocketing cost of homes progressively drove more and more potential first-time consumers out of the prospective buyer market even in more rural areas that have traditionally had significantly more affordable home options than more urban settings.

Concerns still exist, however, that the upcoming major dip in housing prices will have a far more negative than good impact on all markets, with many people losing much of the favourable interest rates they have enjoyed thus far as their total equity amount on their house drops along with their house’s price. Still, other experts feel that this is a positive sign of stabilization as a whole and look towards 2011 as a positive year for all involved.

The property market throughout the UK has been recently described as being in a “dead zone” for many buyers, with investors facing increasing limitations on lending for purchases along with decreasing property prices working to limit the market in many aspects. As an indicator of this a property price index released by Rightmove recently placed the average property price in the country at £232,241, down from £236,332 seen just a few short months ago in June.

The move has had an impact upon all individuals looking to purchase homes from portfolio-building investors to first-time buyers looking to get into the property market alike. This has resulted in many individuals facing financial trouble in paying for their home, with lowering property prices affecting both tracker and fixed-rate mortgages despite the low mortgage rates continuing to be offered.

Many experts say that this move comes as no surprise to them as it has been anticipated for some time, with further declines in home values anticipated through the remainder of this year and somewhat into 2011. Coupled with the fact that many home owners are worrying over the depreciating value of their home and thus trying to sell it before the value declines too much – thus creating a supply surplus – a balance in market prices and stabilization of conditions is not anticipated in the immediate future.

The current market is being referred to by some experts as a “dead zone” thanks to the afore mentioned issues, rapidly declining activity in many areas and a growing lack of interest in ownership as letting is becoming a more common practice amongst young and middle-aged individuals alike.

Working to combat the property market being found in downtown areas and attract buys to more rural settings that still offer commuting options to London, the Saxon Village development in Grantsham has recently declared that it will be giving away season rail tickets for all interested investors in purchasing a home in the area – a none-too-small incentive ringing in at roughly £6,700. This is on top of the fact that house prices in the development are priced highly competitively, costing a mere £99,995 for a contemporary two bedroom home (a significant price reduction over many of the costs found within the city limits).

The development is being established at just over an hour away from London’s Kings Cross station, meaning that individuals looking to purchase homes in the area for work within the city would need to expect somewhat of a commute in the process of getting from home to work each day. At the same time, however, the affordable pricing well under the stamp duty limit for first-time buyers means it is a highly attractive option for many individuals or even small families looking to secure a home on the current low interest rates that might not be able to afford one otherwise.

The development is even attracting some international attention, though thankfully for many domestic owners the ability for many to secure a decent overseas mortgage in the area is relatively difficult as of late and will prevent many deep-pocketed investors from sweeping in and taking control of the area.

The complementary tickets being offered for all purchasers of homes in the area will be made for anyone who reserves a home in Saxon Village in September and will be granted to the rightful owners upon the successful completion of the sale.

Halifax and Nationwide figures differ in their latest reports on house price fluctuations, with Halifax noting a 0.7% increase as a whole occurring in July while Nationwide has reported an overall drop of 0.5% in the same month followed by a 0.9% drop in August. Halifax has also claimed that they predict an upcoming drop in their figures going towards the end of the year as the housing market begins to cool, with prices returning to levels seen at the end of 2009 rather than continual increases as expected by many other purchasers.

The news and conflicting reports is seen by many a ill news, boding poorly for the housing market as a whole and even the commercial sector as fears of a double-dip in the market grows. This is particularly of note following reports from the Bank of England that only 48,722 mortgages were approved in August, showing a slowing trend for both residential mortgages and commercial mortgages as a whole.

Nevertheless Halifax representatives have claimed that the current trend is, in fact, a sign of a healthy real estate sector rather than an unhealthy one. Following the large boom that took please earlier this year the recent cooling is seen as an adjustment period as many locations are simply adjusting to meet the slower trend of the economy as a whole. This is especially true for many areas where bad credit mortgages and other financial support is needed as it could mean that the economic sector as a whole is finally recovering rather than simply sections developing while others flounder.

Latest figures of the overall average house price currently place homes at approximately £167,953, a roughly 9% increase over prices seen in April though still well off the peak seen in August of 2007 when house prices reached unheard of levels across the country.

The latest news shows that the housing market has recently been brought to a standstill in many areas as the number of new homes being built has dropped to its lowest level seen since the 1920s (excluding the second World War). Additionally the number of new houses made available on the market by existing home owners is dwindling fast, contributing to a glut in the supply of residences and having what is seen by all to be a major negative impact on a market that was seen as highly promising just a few short months ago.

The latest figures are particularly disheartening to many first-time buyers looking to take advantage of the still constant 0.5% low interest rates offered by the central banks for lending institutions to base their loans on, with many individuals deciding to put off starting a family until they can afford a home of their own. In fact, recent studies have shown that roughly 33% of men and 20% of women aged 20 to 34 still live with their parents, with the average age for purchasing a home for he first time now rising to an impressive (and scary, for some) 37 years old.

This recent stalling in the market is having a negative impact upon the commercial real estate industry as well, as fewer and fewer investors are willing to put their money into a field that is at high risk of crashing in the near rather than far future. This, when coupled with the fact that real estate development is responsible for creating a large number of jobs throughout the country (with the average development creating 1.5 full-time positions and four times that amount throughout the supply chain to support building construction) many businesses are worried about a wide-spread economic failure affecting all of the UK as a whole – not simply the housing industry.

Falling house prices are a major concern for all consumers in recent months as economists warn of a second property crash potentially on the way in the near future. Nationwide’s latest figures confirm this as well, with the national average of house prices falling by roughly 0.9% over the past month and more expected to be seen on the way as 2010 progresses into the traditionally slow property months of winter.

While for many first-time buyers that have been edged out of the market due to the substantially increasing house prices throughout the country this may be good news for the economy as a whole it bodes ill for many people. This is especially true with mortgage lending being stuck at one of the most difficult times ever to acquire due to rampant unemployment affecting all regions and poor credit worthiness brought on by the credit crisis limiting the purchasing power and credibility of all but the strongest consumers.

Nevertheless should a double-dip in the property market occur there is little that any central banking body can do to assist this time around. With interest rates still locked at the historically low 0.5% little room is left for a central rate adjustment, and as the property market continues to teeter on the edge of collapse even many overseas investments in various residential and commercial developments have begun to wane. This is leaving many local property holders stuck with many property locations that may end up bringing them significantly greater debt than credit and leave them with the sole responsibility to cover their finances should a major financial loss occur.

Economists and professional lending institutions are still looking into various options on how to soften the blow should another major dip occur, however at this time concerns are remaining high and less-than-optimistic as the year comes to an end and property markets are beginning to be well outpaced in terms of supply verses demand.