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Although first time buyers are largely still unable to enter the market due to the lack of mortgages and the requirement for large deposits, those wishing to upgrade their property will see many opportunities to do so in 2009.

Miles Shipside, commercial director, Rightmove, said: "Those looking to upgrade from a terraced to a semi detached property in 2007 would have needed an average of £25,535 additional funds for the purchase.

"However, those looking to do the same in 2008 would need to find an additional £20,959 to trade up, a saving of £4,576 from last year."

However whilst the fall in house prices throughout 2008 can provide the opportunity for people currently on the property ladder to upgrade, there are still problems at the start of the property chain.

David Dalby, residential faculty director, Rics, said: "Because we have slumped so quickly the likelihood is the recovery will be very quick as well and the great danger is people being left behind, waiting that bit too long and suddenly finding prices are starting to move up again and being left behind, particularly first time buyers.”

Shipside added: "Raising a deposit of a substantial amount is critical. If you can do that then I do believe that people will perhaps look back on 2009 as one of the best years to get into the property market for a quality deal in the right sort of location."