People are likely to find themselves in greater debt, which could be made worse if house prices collapse, it is claimed.

According to Paul Holmes, chief operating officer of FirstRung, the success of the property market is generally a barometer for how the rest of the economy is faring.

"It doesn’t turn around in a month; this market turned in about August 2008 when it started to get very nasty and it is going to continue that way for a long time," he continues.

Mr Holmes reiterates the fact that some people have very big mortgages, with those possessing a £400,000 house with a £250,000 mortgage not likely to take too kindly to being told their property is only worth £200,000.

The Department of Communities and Local Government reported in March 2009 that house prices were 11.5 per cent lower in January 2009 than in January 2008.

Further figures show house prices fell by 3.9 per cent in the quarter ending January 2009, compared to a 5.2 per cent decrease in the quarter ending October 2008.