Since the peak of house prices in July 2007, house prices have fallen significantly. The Main Reasons for this are, difficulty of getting mortgage due to credit crunch, affordability (low income), current economic recession and high un-employment rates and also fear of losing money. Simple laws of supply and demand show that until all of at least some of these problems are rectified house prices will continue to fall considerably. House prices in the U.K have fallen every month for the last 12 months and expert economists believe that this current slump could infact go on until as late as 2010. Although bleak sounding, the current state of the property market does favour certain individuals, such as first time buyers who have already secured loan agreements as it gives the a better deal for their money and also alot more bargaining power with estate agents.