The chief executive of estate agency Humberts has suggested that in the worst case scenario, housing prices could drop by six per cent in 2008 but suggested that first-time buyers could find themselves a foothold in a flat market.

Max Ziff told the Times that the housing market does appear to be heading for a crash, commenting: "We predict that prices will either remain flat or, in the worst-case scenario, fall by six per cent next year."

"But, over the long term, prices tend to recover," he explained, adding that "it is dangerous to try to call the bottom of the market".

With price growth cooling, giving buyers time to think their purchase through without fear that prices will start to race ahead quickly, Mr Ziff added that the slowdown could give first-time buyers a boost.

"Those looking to buy in the quieter months, with fewer buyers and less competition, can drive a harder bargain," he said.

In recent months, first-time buyers have been adopting a range of different strategies to help them get onto the property ladder, with a survey from Scottish Widows revealing that 72 per cent of graduate first-time buyers have opted to co-buy with a friend, family member or partner.