First-time buyers stand to benefit from a slowdown in the housing market but may find it increasingly difficult to obtain a mortgage in the months ahead, it has been suggested.

Soaring house prices have put home ownership out of the reach of many people who want to get onto the property ladder, with research from the Halifax revealing that the number of first-time buyers is at lowest level since 1980.

Paul Holmes, chief executive officer of advice organisation Firstrung, explained that there is some good news for would-be homeowners, commenting: "House price inflation, as a phenomenon, is over for this generation."

He predicted that over the next three years, there will be a "35 per cent correction" in house prices, a change that will "help first-time buyers, without a shadow of a doubt".

However, Mr Holmes pointed out that people are still faced with obstacles to home ownership as a result of the tightening of lending criteria in the wake turmoil on world financial markets.

"With all the risky mortgage products taken out of the market place, this puts a lot of first-time buyers back to square one," he said.