Will property buyers talk themselves into a downturn?

Today's revelation that we saw the first month on month reduction in UK house prices for 10 months has spooked many investors in the market and heightened concerns about the strength of the underlying property market and the UK economy. While it is dangerous to take any one figure in isolation there is the potential for property buyers to hold back on their buying interest in the short term and see whether this reduction between January and February is the beginning of a new trend.

In many ways this could become a self-fulfilling prophecy as more and more investors hold off and more and more buyers drop their prices to sell their properties. In what could become a vicious circle there is the danger of potentially talking ourselves into a recession in the UK property sector which will have significant implications for the overall UK economy.

At this moment in time we need to see UK banks stepping forward with increased liquidity and increased assistance for not only those moving up the property ladder but those attempting to climb aboard. First-time buyers are the life blood of the UK property market and without them it will be difficult for the market to move ahead and stay positive in the short to medium term.