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 In further sign that the housing market is grinding to a halt, the latest data shows that the number of mortgages approved for house purchase dropped "significantly" in October.
A survey conducted by the British Bankers' Association has found that its members approved 44,105 home-loans last month, compared with the 53,997 agreed in September.
According to BBA statistics director David Dooks, this reduction is due to the severe financial difficulties British homeowners are now under following a number of interest rate rises since August 2006.
Financial Difficulty | Sell and Rent Back your home
"October's data provide evidence of a rapidly slowing mortgage market and of consumers limiting their personal borrowing," he commented.
"Pressure on household finances, the cumulative impact of interest rate rises over the last year, the expanded application of home information packs and the consequential impact of the credit crunch may well all have a part to play in suppressing current demand and supply."
In light of the results, Global Insight chief economist Howard Archer believes there is a "genuine possibility" of a housing market crash.
Fast property sale expert Julian King of National Homebuyers agrees: "There are too many factors that now suggest a downward price spiral with increased speed is around the corner.
"Homeowners concerned about their immediate financial situation should act now to avoid financial difficulty or the threat of repossession."
Mr King is a director of National Homebuyers, the UK's leading fast property purchase firm. The Sussex-based company can arrange a Sell and Rent Backequity release solution where homeowners can sell their property for cash, but remain living there as a tenant.
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