For those looking to purchase a piece of property next year, heads up, because property values are on course to fall 7%, analysts predict. While banks are still being selective as to who to lend to, property values continue to suffer. Demand is simply not there. If demand is not present, simple economics tells us that properties cannot carry the same sticker price.

Mortgage approvals are slipping each month. November saw an approval figure of 45,000. That is slightly up from the October and September total of 44,000. But exceptionally lower than the same time last year by 26%.

The chief economist at IHS Global Insight, Howard Archer, commented on the status of the housing market along with future developments, saying: "This evidence of low - but possibly stabilising - housing market activity reinforces our belief that house prices will not crash but will trend down gradually to lose around 10 per cent from their peak 2010 levels by the end of 2011.

"Given that house prices have already fallen by some 3 per cent overall in recent months, we believe that house prices will fall by around 7 per cent in 2011.

"Critical to the development of house prices over the coming months will be the amount of houses coming on to the market, mortgage availability, and how well the economy and jobs hold up as the fiscal squeeze increasingly kicks in."

The word of concern comes as the Council of Mortgage Lenders reported lending was off 5% from October to November.

The CML report is indicative of the chaos within the market which was caused during the end of 2009. While the government was allowing a holiday to the stamp duty, citizens were out purchasing property they still could not afford.

The CML chief economist, Bob Pannell, expressed his opinion regarding the activity level of the market, saying: "The fall in gross mortgage lending in November reflects the usual seasonal slowing of activity at this time of year, and reinforces the picture of a continuing flat market."