The winter months are upon the housing market and the accompanying freeze is already rearing its ugly head.  House prices dropped for the fourth month in a row, sliding 0.7% month on month, according to mortgager Halifax.  The average price of a home in the UK now sits at 158,426 pounds.  As a reference, the average price of a home back in August of 2007 stood at almost 200,000 pounds.

The Bank of England efforts including the Funding for Lending Scheme is falling short of estimates for approved loans.  What was once estimated to produce almost 80,000 approved purchase loans per month for available houses has fallen to slightly more than 50,000 as recently as September.  Consumer confidence also continues to struggle adding to the housing market’s woes.

Halifax economist Martin Ellis commented on the recent drop in house prices, saying: "The weak economic background has been a key factor dampening housing demand this year. Recent encouraging developments relating to the level of overall economic activity and conditions in the labour market, however, may help to support demand and underpin house prices around current levels over the coming months."

Howard Archer, chief UK economist for IHS Global Insight, commented on the house price issue, saying: "The further, and increased, drop in house prices in October reported by the Halifax highlights the fact that downside risks persist to the house price outlook and they could well drift lower over the winter months.”

Remortgage activity remains low even though many high profile lenders continue to offer attractive deals.