Britain's largest building society, Nationwide, has predicted that total mortgage lending will fall in the region of 30% this year, from £100 billion to £70 billion.

Philip Williamson, chief executive, said: "We expect there to be soft landing with lower levels of economic growth impacting on the housing and lending markets during 2005."

He added: "We think that house prices will rise between 0 and 2% for this year, and that the trend will remain flat for two years."

According to a recent report conducted by Rightmove, both the annual rate of increase and the volume of property transactions are heading for their lowest level for ten years

Rightmove is anticipating a 0% year-on-year rate of increase by July with a slim chance of any movement upwards until buyer affordability improves through lower prices, rising wages, or falling interest rates.

Commercial director, Miles Shipside said: "Whilst house prices will soon be the same as a year ago, this will be of little comfort to cash strapped first time buyers or those struggling to move up the property ladder."

"Affordability should slowly improve as average wage rises outstrip house price inflation. In the longer term a return to gently rising prices will be important to encourage and help fund existing and prospective homeowners to move regularly, otherwise the stagnation of volumes is likely to continue for several years."

Neil Foster, a former parliamentary aide to Mr Miliband, said: "David has a very good understanding about the local implementation of national policy. He will undoubtedly want results and will understand the need for agencies to work together. His attention to detail about how regeneration happens by placing people at the heart and not at the receiving end will be central to the way he handles the job."

RICS reveals that property sales have fallen by 30% compared to this time last year. Fears of an interest rate rise in the wake of the General Election is being cited as one of the reasons for the lack of buyers

RICS national housing market spokesman Ian Perry said: "While sales have stabilised in recent months they remain significantly down on last year. Concerns that interest rates may rise again after the election seem to have kept would-be buyers out of the market. However, the low number of property sales, together with a marked cooling in High Street spending suggests that the Bank of England has achieved its desire to rein back household spending and borrowing, mitigating the need to raise interest rates again in the months ahead."

Stick a house on your shopping list.

The supermarket giant Tesco is set to adventure in to the property market by selling off-the-shelf houses for a fee as low as £50.

The supermarket became the first UK retailer to record annual profits of £2 billion, yet is eager is expand into other market areas. A report in trade magazine 'The Grocer' reveals that Tesco is now preparing to set up a website on which homeowners looking to sell could register their properties. Features on the website would include a virtual tour of properties and a failsafe security system that would protect vendors.

A close source to the web designer told the magazine: "The site is incredibly impressive. It will allow vendors to stick their house on the market for a fraction of the sum it costs to go through an estate agent."