A property investment industry expert has suggested that first-time buyers are being put off getting their foot on the property ladder by the "logical fear" of a further fall in house values.
Property Investor News editor Richard Bowser explained that many first-time buyers were likely to hold off until the market has reached the bottom.
He suggested that the value of the large deposit required to secure a mortgage on a home could be "completely blown away" by further decreases in house prices over the next 12 months.
Mr Bowser also noted that a withdrawal of stamp duty was unlikely as the market is likely to recover within the next few years, meaning more taxes and duties could be added.
According to the latest figures from the Nationwide House Price Index, property prices fell by 1.8 per cent in February and 17.6 per cent over the past 12 months.
The data also showed that average house price in February was just £147,746.
With homeowners struggling to find buyers, some may look to improve their homes in order to make them more appealing when the time does come to sell.
Homebuilding and Renovating Magazine editor Jason Orme recently hinted that the home improvement market could be set for a resurgence in the summer, thanks to the better weather.