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Paul Holmes, chief executive of Firstrung, said it will be at least another year before the correction in house prices comes to full fruition.
He added: "Developers have seen a little windown of opportunity in the last couple of months, because, according to the Halifax House Price Index, prices went up slightly last month."
According to the land Registry House Pricing Index for December 2008, the average house price in the UK had dropped 13.5 per cent over the year.
Meanwhile, the Council of Mortgage Lenders (CML) recently reported that gross mortgage lending in the UK stood at an estimated £12.6 billion.
Total lending was down by 30 per cent on 2007 figures.
In November 2008, the CML revealed that there were more than 11 million outstanding mortgages in the UK in the third quarter of the year.
