House prices will continue to decline for the next few years, it has been suggested.

Paul Holmes, chief executive of Firstrung, announced that the prices will only begin to rise once they have fallen by around 30 per cent from their pre-credit crunch peak.

Over the course of the next year and a half Mr Holmes expects to see a drop of 15 per cent, which he said: "Is great news for first-time buyers because properties will become even cheaper."

New figures released by Nationwide have shown that house prices fell by one per cent last month.

The fall ended a nine-month gradual increase, according to the lender's chief economist Martin Gahbauer, who found the average cost of a house to be £161,320 during February.

He also suggested that it was too early to consider the fall as the beginning of a new trend.

First-time buyers may wish to consider making the process easier by using self storage facilities.

Written by Emily Sanders