Another fall in home prices causes the housing sector to point in one unfortunate direction - to a second slump. A drop in the average cost of a home of 1.1 per cent occurred during the five weeks prior to September 11 of this year. Mortgage approvals are practically sitting at record lows and estate agents have never had as much unsold property on their books. Another indicator of the market continuing to head south is, new sellers have reduced their asking prices almost four per cent. The annual rate of house price inflation has also dropped to 2.6 per cent.

The data provided by the property website, Rightmove, paints a compelling picture about the housing market - half of the gains made by the market in the first half of the year have now evaporated.

Miles Shipside, Rightmove’s director, commented on the forecasts ahead, saying: "The 'double-dippers' will be able to point to a clear downward trend, with new sellers dropping their asking prices for three months on the bounce.

"They can cite tough competition amongst sellers and agents struggling to find proceedable buyers for their record levels of unsold stock.

"Conversely, we are also recording the lowest weekly run-rate of fresh sellers since April. This will give some ammunition to those forecasting a flatter price trajectory as it could be an early sign of fresh supply beginning to wane."

The last two months of the year see little activity within the housing market, and prices will most likely end 2010 at the same level they started.

Nick Hopkinson, director of landlord Property Portfolio Rescue, discussed his estimate on when recovery will be sustained, saying: "Prices are going to fall just as certainly as the autumn leaves will fall off the trees in the next couple of months. I don't expect a sustained house price recovery until 2012 at the earliest."