The gloomy news about the housing market is relentless. But anyone tempted to switch off as more data showing house price falls is published would be foolish. Halifax's figures released today show that the pace of falls in house prices has picked up, indicating that a much sharper correction could be on the cards than many people had previously thought.

Usually this news would be welcomed by prospective buyers. As homeowners wring their hands about the falling value of their principal asset, buyers see that falling prices will ease their path to home ownership.

But the lack of mortgage deals available to all but the most cash rich — as mortgage lenders refuse to lend to borrowers who don't have a huge deposit — means that even as prices tumble, first-time buyers can only look on.

If the housing market downturn continues into next year, prospective buyers can only hope that the mortgage market is rejuvenated, allowing them to benefit from lower asking prices. If it doesn't, house prices will continue to slump as sellers slash their prices in an attempt to attract buyers who are unable to raise the finance to complete a deal.

It has the ring of a vicious circle about it.

Homeowners who have no intention of moving and think they will be cushioned from this drama should think again. A falling housing market has numerous knock-on effects, not only at the local estate agent. Housebuilders are already laying off thousands of employees, and sales of household goods has dipped alarmingly as fewer people kit out new homes.

And it is this rising unemployment and slowing consumer spending that will lead us into recession.

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