In every region of the UK during the month of September, house prices dropped. These statistics were revealed today, amid continuing fears that a double dip recession within the housing sector is unfortunately, a distinct possibility. Even London and the South east, where in the past have been mostly immune to the condition, saw their process fall. Hometrade, the housing insider, released the figures today and commented on what the market looks like over the next few months, saying: "Market expectations are now based upon the belief that there will be a period of continued house price falls."

The average cost of a house dropped almost a half of one per cent to 157,600 pounds during the month of September. Needless to say, this put a damper on any confidence the country had in the recovery, which should be showing promising signs by now.

Hometrade also discovered the number of buyers looking for property fell almost 3 per cent - the third month consecutively that has seen a reduction.

Independent of Hometrade figures, the Bank of England and the Council of Mortgage Lenders have had a noticeably smaller number of new loan applications for homes.

Richard Donnell, director of research at Hometrade, spoke frankly about the current state of the market, saying: "Over the last six months the supply of homes for sale has grown by 16 per cent while demand has fallen by 1.6 per cent."

He added: "Growing concerns over the economic outlook and public spending cuts are weighing heavily on would be purchasers. Anecdotally, agents report that there are fewer purchasers and that those looking to buy are both cautious and choosy."