Three reports from the Times of London in the UK. "House prices in London fell by 4.4 per cent in the year to May — their sharpest fall since August 2009, according to the Office for National Statistics. It was the 11th successive month that the ONS year-on-year comparison showed a decline."

"Samuel Tombs, chief UK economist at Pantheon Macroeconomics, said: 'The downturn in London probably isn’t a sign of an impending slump elsewhere but instead reflects the slowdown in net migration, a glut of newbuild flats and valuations correcting from excessively stretched levels.'"

"Property prices go down as well as up. Even a self-confessed novice investor like Jake Turnbull knows that. However, since a nationwide collapse in prices of more than 30 per cent seemed unlikely to the public sector worker, about four years ago he decided to place a 'significant amount' of his savings into a company called Saving Stream."

"The peer-to-peer lender crowdsourced funds from ordinary investors and lent the money on to businesses in the form of short-term bridging loans. In an era of record low interest rates, its pitch was an attractive one: it offered returns of up to 12 per cent and said that investors could act with 'peace of mind' since it secured their borrowings against property and left plenty of headroom. Loan amounts never exceeded '70 per cent of the open market value,' it said."

"'I invested on the basis of that, I thought it was a safe bet,' Mr Turnbull, 37, says. He wasn’t alone. Now he finds himself among about 9,000 investors facing hefty losses on the more than £150 million of outstanding debt arranged by the platform."

"Families are being stuck with homes funded by risky loans because a government-backed holding company is blocking their attempts to sell them and pay off their debts. Borrowers in negative equity, lumbered with 125% interest-only mortgages and high-interest equity release deals, have been pleading with UK Asset Resolution (UKAR) — set up by the Treasury — to settle their debts."

"However, UKAR has been refusing to negotiate settlements — sending one couple to the brink of bankruptcy. To compound matters, the borrowers say UKAR has almost non-existent customer service, takes weeks to answer questions and communicates only by letter."

"'I don’t understand why they won’t let me pay off what I owe them — I’ll go bankrupt,' said Kate Wilson. UKAR will not allow her to sell her house in Carlisle so she can escape her interest-only mortgage, which costs £550 a month. 'I admit I was naive when I took out the loan, but I have always paid my mortgage and now I just want to sell the house and move on.'"

"Wilson, 42, admits she made a dreadful mistake when she first bought her house in Carlisle. Aged 30, she and her partner at the time were desperate to buy. They did not have a deposit so took out a 125% interest-only deal with Northern Rock, borrowing £161,000 on a £129,000 property. The loan is now on a rate of 5%; she has never missed a £550-a-month payment."

"When Northern Rock collapsed, her loan was first moved to a bad bank called NRAM, and then to UKAR. Her house has plunged in value and is now worth £95,000. She has repaid some of the original loan but still owes £132,000. She has paid an estimated £70,000 in interest."

"After putting the house on the market last October, she received an offer of £95,000 in May. But UKAR won’t let her sell the house unless she has the savings to cover the £37,000 shortfall. 'I’m not allowed to rent it. I want to get rid of it and pay off every penny I owe,' said Kate. It has been flooded, leaving her with insurance bills of £200 a month."

From BBC News. "Detached homes in London fell in value by more than £50,000 in a year, according to official figures, driving the slowdown in UK house price growth. Typically, this type of property cost £903,088 in May last year, but fell by 6.1% to £847,998 by this May, Land Registry figures show."

"'The scale of London's fall is also a reminder of the definitive shift in the dynamic in the capital,' said Jonathan Hopper, managing director of Garrington Property Finders. 'Buyers are now setting the tempo, dictating terms in price negotiations and frequently able to secure additional discounts on properties that are already reduced.'"