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Mortgages saw a strong reduction of 10% in the past year as buyers are trying to find affordable offerings.

Lenders have kept a tight flange on who they lend to the middle of the rise in unemployment and fears as borrowers default on their payments.

The Bank of England figures showed that only 45,000 mortgage loans have been approved for the purchase of the House by the major banks in the month of November.

Figure increased slightly on the approvals of 44,000 seen in September and October, but he was still a 26 per cent lower last November.

Trends in lending report showed progress for the purchase of the House are mastered to 5.6 billion pounds.

Howard Archer, Chief UK and European Economist at IHS Global Insight, said: "this proof of low - but perhaps stabilization - the housing market activity reinforces our conviction that housing prices will not overwrite but will likely decrease gradually lose approximately 10 per cent from their peak levels at the end of 2011 2010."

"Given that real estate prices already fell by around 3% overall in recent months, we believe that House will fall 7% in 2011."

"Critical to the development of prices for real estate in the coming months will be the amount of houses from the market, availability of mortgage, how much economy and jobs take more and more through tax reduction."

The warning comes after the Council of mortgage lenders said 11.1 billion pounds was lent to the month of November, which is 5% on the previous month

He said that the year in the fall of the year reflects distortions of the market in 2009 due to the imminent end of holidays to stamp of the Government, which resulted in people who are buying properties costing up to ￡ 175,000 rushing to sales before the end of the year.

Bob Pannell, CMA, Chief Economist said: "the drop in mortgage crude in November reflects the seasonal normal slowdown in this time of year and strengthens the image of a continuous flat market."

"Comparisons with the previous year are somewhat deformed, as some house purchase activity within months of 2009 to shutdown postponed household take advantage of the stamp duty concession." But the demand for mortgage borrowing and lending funds offer remain strongly limited.

"CML market forecasts published last week suggest that it is likely to remain at similar levels this year mortgage crude in 2011." We believe crude mortgage for the next year will be total approximately 135 billion pounds. ?

He added that the CMA should mortgage advances total 135 billion pounds in 2011, unchanged from this year.

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