According to the Land Registry, house prices in January were down by 15.1% since the same time last year. Every region in England and Wales has seen property prices fall by at least 12% in the last year. Buyers are waiting until they see that the market has bottomed out, and with the waiting, house prices are expected to continue falling for the next few months. There are however signs that the freefall may be easing and soon may have reached the bottom.

Mortgage availability is beginning to see change. In January, mortgage approvals held steady at 31,000. Although this is half of what it was last year, they have averaged 31,000 for the last six months. Mortgage lenders typically want a deposit of 20% of the purchase price which is a hefty sum to secure. Saving for a deposit takes time and in this time house prices fall. However, Northern Rock will soon begin to offer some 90% mortgages. The Bank of England is expected to lower base rates again and is also likely to increase the amount of money in the British economy, both of which will improve the supply of funds for mortgages.

The current low interest rates, although will not lead to a sudden housing market revival, do make loans more affordable which will be another positive support for both new and existing borrowers. According to Halifax, mortgage payments have fallen from 31% of gross earnings for a new borrower in the first half of 2008 to an estimated 21% in January 2009. The house price to average earnings ratio has decreased to an estimated 4.48 in December 2008 from a peak of 5.84 in July 2007; a fall of 23%. The long-term average is 4.0. Potential buyers are noticing the opportunity: according to the Royal Institution for Chartered Surveyors enquiries from new buyers rose in January 2009 for the third successive month.

Of course, there continues to be pressure on incomes with rising unemployment and the negative impact of the turbulent financial markets on the availability of mortgage finance, but the update is that there are signs that the freefall on house prices and drought of mortgage availability is easing. As such, it could be wise to buy before house prices reach bottom as with low prices, low interest rates and increased mortgage availability an eventual recovering economy could bring house prices to rebound sharply.

Land investments in UK have emerged as an attractive alternative investment vehicle. Many UK land agents are now offering the opportunity for smaller investors to buy a parcel of land for sale in UK at very reasonable prices. This land may be targeted for development at a later stage and is usually in a key location, where its value is forecast to increase.

Acute mismatch between demand for housing dwellings and actual land availability has led to a huge shortage of affordable and mid priced housing in UK resulting in a sharp rise of real estate prices thus there is a huge potential market for such investment. Recent surveys show that investment in UK land for sale has outperformed stocks and shares for each of the last 5 years and is one of the most popular forms of investment by private individuals.

Shortage of site suitable for residential development have encouraged investments in undeveloped Brownfield, Greenfield and Greenbelt Land which have been bought up by big land investments companies and have chances of gaining planning permission. Ordinarily this type of land is usually either too large or too expensive for small investors, but they can afford a small parcel of the land which they can then sell on again at a later date, hopefully making some profit along the way.

Investments in UK land for sale is also generating huge interest among Islamic and ethical investors which are increasingly viewing it as a preferred investments destination also there is a renewed push from government authorities to encourage housing development in such areas resulting in chance for rise in return on investments from UK Land for common investors.