Property transactions at 50-year low

The number of properties changing hands in the UK is at its lowest level since 1959.

According to HM Revenue & Customs, 43,000 properties worth £40,000 or more changed hands in January a record low.

The news will come as a blow to Alistair Darling, who suspended Stamp Duty on all properties bought for less than £175,000 last year in an effort to stimulate the housing market.

Since the Government first aired its intention of reviewing Stamp Duty early last summer, the number of properties changing hands has actually halved.

Simon Ward, chief economist at New Star, said house prices have now hit what might be considered "fair value" in comparison to rents.

However, house prices tend to overshoot during crashes, he added, implying there may be a further 16% for prices to fall.

With every extra percentage point fall in the average house price, more than 100,000 homeowners slide into negative equity.