Figures released by HM Revenue & Customs (HMRC) show that the number of property sales in the UK has fallen by 53% over the last year.

The amount of residential properties sold last month was 67,000 less than the figure for the same month in 2007, from 126,000 down to just 59,000.

The HMRC data shows that property sales hit a high in December 2006 reaching 154,000 through the month which is 62% more than the most recent figure recorded.

One of the reasons blamed for this decline is the tighter credit conditions which came as a result of the credit crunch, with potential buyers having difficulties getting approved for mortgages. Figures from the Council of Mortgage Lenders show that the number of mortgages approved last month fell to the lowest figure in nearly 4 years.

A drop in consumer confidence due to falling prices has also been flagged as a contributing factor.

There have been 747,000 property sales recorded so far in 2008, showing a significant fall based on the 1.2 million recorded at the end of September 2007. Chief UK economist at Global Insight, Howard Archer, said the figures "provide yet further evidence of the dismal state of the housing market."

The property website Rightmove have reported that asking prices have plummeted at their fastest rate ever this month as sellers attempt to attract buyers in the damaged market.