Property prices will fall by up to ten per cent according to three-quarters of respondents, said the Building Societies Association (BSA).

The Property Price Tracker survey, carried out by YouGov on behalf of the BSA, showed that 74 per cent of people expected property prices to slump between five and ten per cent over the next year.

According to the study, there are marked regional differences, with people in Wales the most pessimistic expecting property prices to drop by 9.1 per cent.

Director general of the BSA Adrian Coles said: "It is clear that the positive outlook that has characterised the property market for the last few years is now a thing of the past, and people expect prices to fall over the next year."

Despite an average expected fall in prices of 7.1 per cent, most people will still maintain a considerable amount of equity in their property, he added, and the drop in prices may give first-time buyers the reprieve they need to get on the housing ladder.

The BSA represents the 59 building societies that operate in the UK, which have more than 15 million customers.