Both commercial and private property values are predicted to fall in 2008, according to industry experts.
Commercial property agents, King Sturge, warned of a ten per cent drop and mortgage advisors, Firstrung, predicted prices could drop by one per cent each month.
Angus McIntosh, head of research at Kink Sturge, told the Telegraph: "Commercial property prices will continue to fall in the current quarter. However we think that prices will bottom out by Easter."
Paul Holmes, chief executive officer at Firstrung, said that first time buyers and the self- employed are "going to struggle now".
"My best guestimate and of course its finger in the air for even the best economists on the planet is that house prices will correct by a per cent a month over the next three years, so well see a 35 per cent correction in house prices," he said.