According to a report in the Daily Mail, house prices will fall by up to 10 per cent next year and then take many years to return to the peak seen in 2007.

A survey found nine of 14 economists and estate agent groups are expecting price falls against a background of rising unemployment and home loan rationing by the banks – meaning next year might not be the best time for first-time buyers to order home removals.

House prices in some parts of the country, particularly London and the South East, have picked up this year.

However, housing economist, Seema Shah of Capital Economics, said: ‘The market is still overvalued, whichever measure you use. Prices need to fall a further 20 per cent to 25 per cent to get back their long-term trend.”

One Daily Mail reader said: “Let’s be honest, house prices are too dear anyway, and I am a home owner. So many in their desperation to do the right thing and climb upon the property ladder have over stretched their finances, encouraged by reckless lenders and this has played its part in the dire state that this country now finds itself in.”