The rising price of fuel, a fall in house prices and the fallout from the Northern Rock crisis are all to blame, according to traders this week.

Estate agents are among the first to feel the pinch and one is taking special measures to keep ahead of the downturn.

Sarah Waldeck, of Winkworth Estate Agents, West Street, is encouraging people selling their homes to pay the deposit and in effect offer buyers a five per cent discount.

She said: Where first time buyers are finding it difficult to obtain a mortgage and larger deposits are required, Winkworth are encouraging vendors to offer their houses with the five per cent deposit paid in the hope that it will entice first time buyers to make offers and ultimately encourage them to start buying again."

Valuer Jane Willis, of Eckfords Property Scene, West Street, agreed that Bourne's property market had taken a hit.

She said: "It has affected the housing market without a doubt, but there are still buyers out there and people who want to move.

"I think some of the bars and clothes shops have been more quiet, because people are cutting back on luxury items."

Traders agree that the town has become quiet over recent months but say it may even provide an opportunity for local business.

Chairman of Bourne Chamber of Trade Jane Good said: "If petrol is going up, hopefully people might stay in town rather than going to Peterborough. We're down a bit, but not enough to worry yet. People are being careful with their money and, from my business point of view, are buying clothes when they need them rather than when they want them."

Stephanie Romaine, of Stephanie's Florists, said: "It hasn't affected us yet but we have noticed a drop in the number of people in the town centre."

She called on shoppers to support the town through a difficult period saying: "All the little shops in Bourne provide a good personal service and this is why we should support each other."

Bourne Town Mayor and market trader Jane Kingman-Pauley said she had noticed the impact of the credit crunch over recent months.

She said: "People are not using their credit cards as much and we are getting more people paying with cash."

But Chris Falco, general manager of the Angel Hotel and Fratellis, on North Street, remained positive claiming business is as usual.

He said: "From a business point of view I have not seen any major issues and most of our customers seem to be in a positive, mood. We are a luxury. If there was a credit crunch we would be one of the first industries to suffer."

What are your thoughts on the credit crunch? Post your comments below...