According to Kinleigh Folkard and Hayward 2009 Property Prediction and YTD Review of 2008, the number of property transactions will be halved in 2008; selling prices have decreased by more than -20% than the 2007 peak; by early 2009, property values will reduce by a further 4-5% and there will also be little movement in values in 2009-10.

Lee Watts, managing director of Kinleigh Folkard and Hayward said: “ The current market conditions have been brought about by too much money being irresponsibly available over recent years, leading to property prices overheating. This has now been compounded by insufficient money being available, combined with a widespread lack of confidence in the government and financial institutions.

“Based on our experience across the London market place, property selling prices today are in excess of 20% less than at their peak in the spring/early summer of 2007. Some institutions and commentators have announced falls of between 9-12%, but I would say based on London alone, these figures are wildly inaccurate.

“People will always need to move, and as we progress into 2009, I predict we will see a change in the supply:demand ratio for property, and albeit slowly, with increasing levels of activity and transactions as the year progresses.

“In 2009, I suggest that we will see a +15% increase in UK sales transactions compared with 2008. Based on my forecast that there will be 600,000 sales transactions in 2008, this reflects a total of 690,000 transactions in 2009 which will still -44% less than in 2007.”