April figures for Mortgage approvals show a 40% decline in approvals on this time last year, further highlighting the effect that the credit crunch is having on the UK housing market.

The Council of Mortgage Lenders has indicated that house prices in the UK could drop by 7% and the number of property transactions could fall to below 1 million possibly reaching levels not seen since the 1970’s.

The main driver being a damaging combination of  previously stretched affordability and a tighter restraint on lender criteria resulting in a low housing market activity.