With the British housing sector in dire trouble the government – in the form of Chancellor Alistair Darling and Housing Minister Caroline Flint – are said to be ready to unveil a mortgage package that is designed to help to stabilise the market.

The bold plan will see Councils empowered to offer poverty stricken families the chance to obtain finance by selling a portion of their property. Councils will also be able to assist first-time buyers with deposits.

Some industry experts have advocated the need for the government to introduce a brief stamp duty holiday. However, the Chancellor is said to be reserving a decision unless there is further deterioration of the housing sector.

With house prices suffering their steepest decline in nearly 20 years and analysts suggesting there are no signs of recovery, it is predicted that sellers will have to reduce their prices in order to have any chance of selling their property. Additionally first-time buyers are finding that it is increasingly difficult to overcome the tightening lending criteria that is being applied by the major mortgage providers. For Instance, the Alliance and Leicester Bank has said that it will not issue a mortgage to anyone who cant raise a 15% deposit.

Estate agents are also bearing the brunt of the housing sector malaise and it is estimated that as many as 10,000 jobs will be lost.

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With reports that over 70 Labour MP’s have signed a petition to urge Prime Minister Gordon Brown to impose a windfall tax on the UK’s major energy providers, the industry has warned the government to think carefully before any action is taken.

Industry insiders said that power providers are struggling to make a healthy profit even after the huge prices hikes that have taken place this year. The reality is that the imposition of a windfall tax will ultimately result in even higher gas and electricity bills as energy companies will pass any extra costs on to their customers.

A spokesperson for nPower stated that the firm had not even made £500 million from the British market but is considering investing a large amount of money on improving infrastructure in the UK over the next few years. However he warned that a windfall tax might lead to the company having to reassess its position.

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The UK housing sector continued to show signs that a slide into recession is inevitable as the Nationwide Building Society reported that house price values had fallen by 10.5% over the last 12 months. This dramatic fall in prices represents the quickest rate of decline since 1990 and thousands of homeowners are now finding themselves in negative equity. The building society predicted that the trend will continue until the end of 2008.

To add to this bad news, industry analysts warned that the UK’s static economic situation means that in certain geographical areas house prices could fall by as much as 20%

Economists also fear that if the economy is not revived, in the near future, increasing numbers of people will be forced to part with their homes, especially if there is an increase in unemployment levels.

There does , however, appear to be light at the end of the tunnel, as the Nationwide stated that it expected that the housing market will experience some kind of meaningful recovery by 2012.

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A government minister has warned British consumers that they will no longer benefit from cheap gas and electricity prices. Business Secretary John Hutton stated that the government is concerned that families will have to face a tough winter because they may be unable to cope with the steep rise in energy costs.

Mr Hutton added that Britain needed to secure sufficient energy resources, which is necessary for the survival of any democracy. He also said that the UK needed to invest around £100 billion ,over the next decade, in clean sources of gas and coal.

Over 70 Labour MPs have signed a petition aimed at pressurising Prime Minister Gordon Brown into imposing a windfall tax on power providers. The tax is designed to reclaim some of the massive profits that energy firms have received from the increases in gas and electricity prices .However, Mr Hutton warned that the UK should not create conditions that would prove to be unattractive for new investors.

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The Halifax Bank has announced that it will be launching its latest credit card scheme for current and new customers. The new credit product means that consumers can benefit from an extra month of 0% interest on purchases and balance transfers.

The bank stated that it was now able to offer a credit card that had an interest free period that lasted for a total of eleven months. The firm also added that customers will find that they could save hundreds of pounds.

Meanwhile, Apacs, the UK payments association, reported that there were around 1.8 billion purchases during the April to June period, which amounted to nearly £93 million of transactions

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GE Money Home Lending reported that over 410,000 UK mortgage applicants have been refused a mortgage over the last 18 months. The firm also revealed that around 480,000 people had to apply an average of four times before they were able to secure a mortgage or loan.

A spokesperson for GE Money Home Lending stated that consumers should be aware that multiple applications will be recorded against credit records and may prove to be counter-productive.

The firm recommended that applicants do not waste their time by applying to various lenders. They should conduct research to find out which of the reputable lenders are most likely to grant them a mortgage. Anyone who is unsure of how to navigate the mortgage market should seek expert advice.

The use of comparison websites such as Save On Bills will help consumers to find the best mortgage deals.

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Energy analysts have said that British consumers should take advantage of Scottish Power’s fixed rate tariff. This follows the widely reported increase in the cost of wholesale gas prices. This has led to steep price hikes by four of the UK’s giant energy providers which include Scottish and Southern Energy and Eon.

Consumers can save hundreds of pounds if they secure the best gas and electricity tariffs, especially before the winter months set in. Scottish Power has trimmed around £60 from its leading fixed rate tariff until October 2009.

The current credit crisis now means that the average yearly bill is around £1,100 per year for dual fuel customers.

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The Consumer Credit Counselling Service has revealed that British people are now accounting for around £1 billion of personal loans per month. The current trend in the unsecured loan market has also seen a rise in the level of debt problems.

The Citizens Advice Bureau has also reported that there has been a steep rise in the amount of queries from individuals and families who are struggling to cope with credit card and personal loan debt.

However, whilst the credit crunch is continuing to hit families and businesses in the UK, the Insolvency Service has released figures that show that the level of personal bankruptcies had fallen by 1.3% between the first and second quarters of 2008.

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British motorists may have to endure yet further financial hardship if the Government goes ahead with plans to introduce a new pay-as-you-drive policy. The proposed nationwide scheme will see motorists face peak-time charges of £1.30 per mile on busy roads as well as having to face additional motorway tolls.

It is expected that the scheme ,which will be piloted in 2010, will involve sophisticated satellite tracking technology to trace vehicle movements. If the proposed scheme proves to be successful, the satellites will be replaced by black boxes, which will be stationed on British roads to collect data. Motorists will then find themselves presented with a weekly bill based on their movements on the busiest roads.

The proposed introduction of pay-as-you-go driving will come as unwelcome news for British drivers who are struggling to cope with the credit crunch, increases in car insurance premiums and the soaring cost of road tax.

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In another sign of the continuing decline in the UK mortgage market the Halifax Bank has announced that it will close over 50 of its estate agency branches. It is expected that the cuts will result in the loss of around 100 jobs. The lender blamed the closures on the credit crunch which has led to a downturn in house sales during the last 12 months.

Housing sales are reported to have fallen by 50% in comparison to last year’s figures.

The Halifax said that although 100 people would be unemployed because of the closures, another 450 staff would be redeployed to other branches.

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