It is becoming a familiar scene, roads lined with 'For Sale' sign as houses linger on the market for months at a time. For those looking to sell at the moment, buyers are undercutting original prices outrageously and still sales are falling through.

This dramatic downturn in the housing market is directly linked to the way in which the mortgage market has dried up and caved in on itself. Few but they very rich can secure a mortgage. First time buyers are floundering while all the good deals are disappearing from the mortgage market.

As a result, official data from the land registry has shown that the number of house sales has fallen by a massive 50 per cent since last year. In March 2007, over 100,000 houses were sold, whereas in March of this year, 2008, barely 50,000 houses have been sold.

The data also revealed where the most badly affected areas were, citing London, Rutland and Wales. In London, sales of houses under £200,000 actually fell by 60 per cent since last year, reflecting the fact that lower earners and first time buyers looking at the lower end of the housing market are simply unable in many cases to get a mortgage.

All of the most generous offers have been hastily withdrawn from the mortgage market as lenders simply do not have the leeway or in some cases funds, available to them that they did previously.

Economic experts have suggested that the real figures may be even worse than the pictures which these figures present as they only went up at the end of March and the situation has been changing on a practically weekly basis.

April was the worst month for products being pulled from the market, with over 2,000 mortgage products removed from the market during April.

Seema Shah who is the property economist at Capital Economics, said: "Transactions are now half the level they were a year ago. This is certain to further depress house prices.

"What's more, in recent days we have seen a further slump in mortgage approvals and growing evidence of slowing economic growth, while the mortgage credit squeeze shows no signs of easing.

"Overall, the balance of evidence is pointing to further sharp falls in house prices in the months ahead."

The British Bankers Association had announced just last week that the number of house sales are actually at their lowest ever since records began, which was eleven years ago.

To make things worse, a number of economists have predicted that house sales will continue to fall. Some believe that they will fall by as much as a further 40 per cent this year, while Halifax, the country's biggest mortgage lender predicted a fall of 45 per cent.

The economy is already feeling the effects of the crumbling housing market, with thousands of jobs being cut in the property business, such as estate agents, mortgage brokers conveyancing solicitors and removal men.