Chancellor Alistair Darling on Tuesday pledged continued support from the government and the Bank of England to help stabilise the financial and housing markets.
Speaking to reporters during a visit to China, Darling said the unfolding slowdown in housing was not surprising given what was happening in the wider economy.
"We will continue to take whatever action is necessary to support the wider financial market and therefore, through that, the housing market," Darling said.
However, he said he remained confident that Britain would continue to grow and noted that inflation figures on Tuesday were slightly better than expected. Consumer prices rose at an annual rate of 2.5 percent in March, a whisker below analysts' forecasts.
"In relation to the housing market, you will be aware that we are working with the Bank of England to continue to support stability within the financial markets," Darling said.
He noted the Bank had been providing extra liquidity to money markets, while Prime Minister Gordon Brown had met bankers in London on Tuesday before leaving for the United States.
Darling said the drop in housing market sentiment to a 30-year low had to be seen in the context of a 170 percent rise in house prices over the past 10 years.
"The housing market is slowing down. We expected that it would slow down," he said.
