Rightmove’s commercial director, 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."

Richard Brady of Olive Tree said “With interest rates dropping so significantly, the cost of mortgage borrowing has dropped dramatically” It is true, mortgage holders can borrow up to £70,000 more in some cases and still be paying the same as they were in the summer.

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.”

Raising a deposit of a substantial amount is critical. If you can do that then perhaps people will 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.

Some of the best mortgage rates today are

Provider                                 Rate

Alliance & Leicester                3.49

Northern Bank Ltd                   3.49

HSBC                                      3.64

Cheltenham & Gloucester      3.69

Lloyds TSB Scotland              3.69