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Up to 6.5 million people have been forced to consolidate their debts in the past three years in a bid to keep borrowing under control.

And 1.29 million of them have moved debts of more than £20,000 run up on loans, credit cards, store cards and overdrafts to one lender, the independent financial comparison website says.

The study shows 14 per cent of people have moved debts to one lender in the past three years and it is younger people who are most likely to have consolidated - 23 per cent of 25 to 34-year-olds have moved all borrowing to one lender.

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House prices fell for the sixth month in a row over March, according to Hometrack’s national housing market survey.

Average prices were down by 0.2% over the month with the annual rate of growth slipping to +0.4%, the lowest level for two years since March 2006. The survey highlighted a continued improvement in both levels of demand and transaction levels although pricing levels are likely to remain under pressure over the coming months.

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Why has council tax risen so much more than inflation?

* for Band D property.

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Citizens Advice (CAB) has seen a dramatic surge in consumers seeking help with mortgage arrears in 2008.

In the first two months of the year, Citizens Advice Bureaux across England and Wales saw mortgage arrears enquiries climb by 35 per cent compared to early 2007 - with the total number of debt problems dealt with amounting to 215,000 across three-quarters of Bureaux.

Meeting other household bills such as water, gas and electricity and council tax, was also seen to be a growing issue.

Debts is top priority for consumers contacting Citizens Advice, accounting for one in three enquiries, with those relating to credit, store and charge cards forming the largest individual category.

However the figures for plastic debt bucked the trend usually seen at this time of year, falling by 9 per cent, with overdraft issues up 7 per cent to fill the gap.

Teresa Perchard, director of policy for Citizens Advice said: “These latest figures paint a worrying picture - the combination of big increases in household bills, especially fuel, and rising housing costs is putting additional pressure on people’s finances when they are already stretched to the limit.”

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Property price panic has seen a raft of high-value properties come to market, pushing up asking prices, Home.co.uk research has shown.

City workers cashing in on their investments were pinpointed by the firm’s Asking Price Index Report as key drivers of this national trend, with the impact particularly being felt within Greater London.

Indeed 23 per cent of the current stock up for sale in Greater London was rushed to market in the last 14 days.

This has had a significant impact on both the average asking price in the region, which has risen by 3.4 per cent since February to £361,414, and on a wider scale in England and Wales - pushing it up by 1.4 per cent. The average asking price in England and Wales in now £259,026.

The increasingly uncertain economic outlook, driven by fluctuations within the financial markets over the last month and the threat of redundancy, has led a number of investors to cut their losses with the hope of selling up before the Chancellor’s changes to capital gains tax legislation take effect.

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FTBs are being squeezed out of the housing market by unaffordable mortgage deposits…

Katie Tucker of Online mortgage Broker Charcol, revealed: “A tend towards larger deposits could signal a shift in the mortgage market and, consequently, the housing market. The mortgage market is readjusting and the housing market will follow.

“The accommodating lending criteria of the last decade has allowed many people to buy who otherwise wouldn’t have been able to, which has helped push property prices through the roof.

“Following last weeks mass withdrawal of all mortgages that allowed you to borrow more than the value of your property, first time buyers with no deposit, or existing debt will find it difficult to buy now”.

“The move could mean that the market becomes more attractive to high-end investors, who can raise the capital needed to secure a property, particularly if the cost of borrowing falls as many are predicting in light of widespread economic uncertainty.”

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Struggling homebuyers were given no relief by the Chancellor who failed to increase stamp duty thresholds, although there will be some help for those in shared ownership schemes.

The Chancellor announced that buyers who purchase 80 per cent of the value of their home through one of the government’s shared ownership schemes will not pay stamp duty land tax.

While mortgage experts initially welcomed the move, it has been described as “confusing”, because it is unclear how this would actually work in practice.

For example, when the buyer wants to buy the remaining part of the property, do they pay it on the price of the property when they initially bought it or at its current value? And if the house prices increases and the equity naturally increases, what happens then - will they then have to pay this tax bill?”

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CLOUDS are gathering over the UK property market, according to the estate agent Savills, but the ensuing storm should be shortlived. The agent predicts a turbulent half-year ahead, with prime Central London property to suffer falls of 3 per cent and the rest of the country stagnating.

But the difficulties, caused by the credit squeeze and worries about bonus sizes, will be swiftly followed by a return to growth. Across the market, prices across the UK will be up 3 per cent by the end of the year, with London, the South East and Scotland outperforming.

The North, Yorkshire, Wales and the Midlands will underperform, according to the Savills weather map, pictured right.

This turbulence will affect the enthusiasm of both buyers and sellers and turnover will drop significantly. Some may be cheered by an interest-rate cut – Savills expects one next year, but says that, in the current economic environment, it will be 2010 before the base rate again drops to 5 per cent.