This week has seen the lowest number of mortgage applications being made in decades. The number has halved since this time last year, further compounding fears of a recession. It appears that first time buyers are either waiting for the house price crash before purchasing or are turning to rental instead. The number of buy-to-let mortgages have also fallen sharply. There are also far more people being refused mortgages than ever before as banks and building societies try to avoid lending money that they just do not have to high-risk borrowers. House prices in the UK have fallen by as much as 25% in the last eight months. Many homeowners are choosing to sit tight and not sell until prices begin to rise because many buyers are likely to experience negative equity in the current market environment. Many of the largest property developers have ceased construction of new houses to prevent flooding the market with houses that nobody can buy, which would further impact the market value of property. Many such firms have had to make large cut backs and some have had to cancel substantial orders of building materials and make staff redundant.