The homeless charity Shelter has issued a warning that more and more people are using credit cards and personal loans as a way of paying their rent or mortgages, a course of action described as ‘the worst possible’.

The findings are based on a survey of approximately 2,200 people who were asked if they had borrowed money on their credit card to pay rent or mortgage payments in the past 12 months.

6% of respondents said they had done so, which the charity said was a rise on a similar poll a year ago and would equate to more than two million people. Last year’s survey calculated the number of households, rather than individuals, which fell into this category. However, the figure for households has not been calculated this year.

Analysts believe that the vast majority of cases would relate to rent payments, as regular mortgage payments were deducted from bank accounts rather than from credit cards. Lenders have been quick to point out that they would not accept credit cards for regular mortgage payments.

A similar report, commissioned by the Council of Mortgage Lenders (CML) and published in November, also concluded that a small proportion of householders used credit cards to pay mortgages.

The report does contain some heartening news. While 11% have used a credit card to pay their bills at some point, only 2% of mortgagors have ever paid their mortgage on a credit card, with half of these paying off the balance at the end of the month.

Bank of England figures show that unsecured credit - including credit cards, personal loans and overdrafts - has been stagnant over the past year.

The cautious policies of most consumers in the current economic climate have meant repayments have often matched new borrowing. The relatively low number of people using credit to pay for housing costs would make little impression on this overall figure.

There can be no doubt that using credit cards to pay the rent or mortgage is storing up problems for the future. With the average credit card interest rate now standing at over 16% it is the worst possible course of action

In the UK someone has their home repossessed every two minutes. Shelter, a whole host of analysts and this blog urge everyone now relying on credit to keep their home to seek advice immediately.

UK house prices continued to fall in December, sliding 1.3% compared with the previous month. Figures from the Halifax show that the average UK property ended 2010 1.6% cheaper than it was at the beginning.

The decline was considerably less than the falls seen in the second half of 2008 and the average UK house price is now £162,435.

The three-month on three-month comparison in prices, regarded as a measure of house prices that avoids any short-term blips, showed that prices were down 0.9% in the three months to December compared with the previous quarter.

The Halifax said that there is uncertainty among house buyers and owners, despite continued low interest rates making homes comparatively affordable. Analysts believe that there will be limited movement in house prices during 2011 as interest rates remain low for some time to come.

Forecasts are becoming ever more difficult in the UK with regional and even sub-regional divisions becoming ever more important. Poor quality properties in areas of oversupply are experiencing real downward pressure but sought-after properties in areas of high demand are still performing well.

While there has been a gentle decline in house prices as supply has grown and demand has weakened, in certain towns and cities, especially London, the right type of property is still commanding an appropriate price.

There is growing evidence of a North/South divide in the UK housing market, with London and the surrounding areas growing while the North, with its heavy reliance on the public sector at a time of needed government cutbacks, suffering stagnation or decline.

Estate agents have been quick to point out that the headline Halifax house price figure, as a national average, simply does not reflect the regional variations in prices. Many analysts believe this growing regional division will be the big housing market story of 2011.