With more than two million mortgage holders expected to be in negative equity by the end of 2009, homeowners are being told to "stay put" and "not to panic".

Halifax reports a 2.4 per cent fall in house prices in May and with the Council of Mortgage Lenders predicting a seven per cent fall in property prices by the end of the year, many borrowers could find themselves in negative equity.

Graham Lock, of housenetwork.co.uk, told BBC radio 5 Live''s Wake Up To Money: "The headlines are not good, but I think these people who are experiencing negative equity have got to remember what happened in the ''90s."

He said anyone expecting a quick return on a property they bought in the last 12 to 18 months is going to struggle, but many people were in a similar situation in the ''90s and those who held onto their properties made substantial gains.

Many potential buyers have welcomed the fall in house prices with estate agents advising now is a good time to get on the property ladder, according to the BBC.