There are plenty of traditions that are upheld during the Christmas period, some of which have been around for centuries. The presents, Christmas dinner and for many going to mid-night mass on Christmas Eve, all form part of the Christmas celebration. This year although most celebrations have continued, there is a sense that the world around us is changing, even breaking with many norms and traditions. This can certainly be noted in the current economic climate.

One has to look no further then the credit crunch to see how much it has changed the global financial services industry. It has single handedly turned the conventional banking model on its head and changed the face of investment banking for good. During the turmoil the stock markets around the world have witnessed unprecedented market volatility according to the American Fear Factor index not even seen during the 9/11 attacks. In the UK, we now have an interest rate that is at a historical low of 2%, a reduced VAT at 15% and a housing market that looks very uncertain. All of which go against the norm for the last decade.

At this time, another big change can be seen, namely, in the reporting of the state of the UK housing market. Traditionally, the housing market is measured by a number of indices, which gives regular updates and an annual forecast for house prices. Index’s such as the Nationwide index have been around since 1952, while others such as Halifax dates back to 1983. Their insights into the property market form a valuable part in housing valuations both for the private investors but also for financial institutions. This year both these indices have taken the bold step not to report an annual forecast for 2009. They both have cited volatile market conditions as part of their reason for not publishing their view.

So is there any indication of what we can expect in the housing market in 2009? The Council of Mortgage Lenders estimates housing transactions to reach around 700k compared to 900k in ’08 and 1.7 in ‘07. When you add this to a deteriorating economy it becomes apparent that the situation may not get any easier in the near future.