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However, according to data from the UK's second-largest mortgage lender Nationwide, prices have fallen at the slowest pace for a year.
Recent figures have shown that many property sellers have slashed prices in a desperate bid to offload properties.
Stuart Law, the chief executive of the property investment advisers Assetz, commented: "Bankers are forcing developers to sell to get their hands on some cash. We have seen some apartments officially priced at between £120,000 and £140,000 being offered for as little as £65,000."
As a result of the downturn in the global economy, many homeowners are beginning to fall behind with their mortgage repayments, reports the Times Online.
Meanwhile, Michael Saunders from Citigroup has predicted that three million households could end up in negative equity.
