The property industry has been a safe investment for the last decade, with Britain’s devastating housing crash of the early nineties a mere dent in our mortgage history. But with influence from over the Atlantic and credit on the rise, the outlook for the property market looks more than unsteady.

Recent reports from Nationwide report an average fall on house prices for the last four months with a total of 4 per cent lower home value than in October 2007. The Royal Institution of Chartered Surveyors has also revealed a sudden surge of properties being sold, which suggests a panic in the market for those who are hoping to cash in on the property boom of recent years. There is also the highest recorded number of unsold homes on estate agents books since 1999, indicating the slowing of the market and the uncertainty of prospective home buyers to invest in new homes.

As well as rippling out through the financial markets, the effects from our large American cousin are beginning to feed through to ordinary consumers and businesses, who are discovering that borrowing money has suddenly become clearly more expensive. For an economy such as Britain's, which is heavily reliant on debt, that could be serious. House prices are teetering on the verge of 9 times the average income of potential buyers, mortgage lenders tighten their belts and remove offers from the market on an almost daily basis. This credit squeeze signifies preparation for a slowdown, which some feel will return to normal.

London property can already be seen to be hit hard by this property crisis. City workers are bracing themselves for imminent job losses and the constant pessimism draws in a bleak outlook for house prices. However, the opinion of a property crash to rival the early nineties is few and far between.

Chief UK economist Malcolm Barr from JP Morgan has spoken of house prices slipping by 6 per cent this year and continuing to fall in 2009. Nationwide expects prices to be stagnant. Capital Economics is pointing to a 5 per cent fall this year and a 9 per cent fall in 2009.

Overall the market is on unsteady ground. If you are thinking about investing in property contacting specialist property consultants is they way to go to ensure you get the best deal available to you.