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Chief executive Peter Bolton King said strong market recovery in certain sectors could be seen during 2009, but only if three critical indicators occurred.

These include major lenders beginning to make money available to potential buyers, lenders passing cuts in interest rates on to the market and consumers regaining confidence in the state of the housing market if the market is to bounce back.

Bolton King said: "Officially house prices have come down since their peak by around 13 per cent - but speaking to members it seems clear that in some areas at least prices have come down by more than 20 per cent.

"We haven't seen that kind of fall, in such a short period of time, ever before. However, it is also clear that parts of the market are perhaps beginning to bottom out, and it seems possible to me that once the recovery begins, we could see a bounce as pronounced as the fall.

"Some people are beginning to cotton on to this - which is why our members are starting to see enquiries increase again, as people begin to believe they can find a bargain."

However, Bolton King reiterated that if banks and the government did not make a major effort to increase the availability of mortgages, this would counteract any other positive influences on the housing market.

"If things do not improve, then the market could stagnate - and that will have dire implications not only for the thousands of people employed in the profession, but for the economy as a whole."