Julian Knight: This could be the year Britain abandons the dream of being a nation of property owners - Mortgages - Money - The Independent

Julian Knight: This could be the year Britain abandons the dream of being a nation of property owners - Mortgages - Money - The Independent

Despite the economic slowdown, the eurozone crisis and surging unemployment, UK house prices rose by 1 per cent during 2011, according to the Nationwide.

That's quite some performance at first glance and confounds most predictions at the start of the year (although calling the housing market is as tricky as herding cats).

But remember; set against this 1 per cent is inflation at 5 per cent so, like most assets, property has declined in real terms. What's more, the market – four years on from the start of the credit crunch – is still being propped up to a greater degree than at any time in the past. Interest rates are negligible and being kept artificially low, there are more mortgages available now than there have been since 2007, there is a stamp duty holiday in place, home information packs have gone and, crucially, lenders have generally taken a more understanding approach to arrears. Kick a couple of these props away and 1 per cent price growth will seem like a dream.