Two of the UK’s leading mortgage lenders have decided not to publish house price forecasts for 2009 due to the struggling market's volatility.

Halifax and Nationwide release highly regarded house price indices each month, and usually forecast prices for the coming year as well.

Nationwide said that market conditions were so unstable that any forecasts would have to be revised very frequently. A spokeswoman said: “We have made the decision not to publish a forecast for 2009 at this time, however this will be reviewed in the New Year."

She added: “I would not be surprised if recently released forecasts from estate agents have to be revised fairly quickly.” Savills predicted a drop of 11 per cent for next year.

Halifax said it was “not appropriate” to release forecasts given its impending takeover by Lloyds TSB, which is due to be completed on January 19.

“HBOS will no longer exist next year, so it has been decided it is not appropriate to make a forecast”, said Martin Ellis, the Halifax’s chief economist.

“Lloyd’s may not want to use our forecasts,” he added.

House prices have recorded a record slump this year, as borrowers and lenders suffer the impact of the credit crunch and mortgage drought. The latest Nationwide monthly survey, which been published since 1991, saw prices drop by 0.4 per cent in November, and the annual rate fall by 13.9 per cent.

The Halifax, which has published a monthly house price survey since 1983, showed prices down by 2.6 per cent in November, and 14.9 per cent over the year.

The Council of Mortgage Lenders took a similar stance earlier this week, when it declined to make any house price forecasts about the coming year in such a volatile market. However, it said that repossessions would surge by 67 per cent in 2009, with 75,000 households facing eviction.

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