When a property market suffers a sharp fall in prices, it stands to reason that those who suffer the most are owners who have only just bought their property, as they haven't enjoyed the benefits of the boom period that generally precedes the downturn. Amongst these owners, it is often first time buyers who suffer the worst, due to the fact that they are more likely to overstretch themselves in order to get on the housing ladder in times of rapid increases in property values.

It is perhaps for this reason that Hugh Dunsmore-Hardy, chief executive of the National Association of Estate Agents has advised young buyers to put their plans on hold and carry on renting until the housing market cools down, saying: "If I was a first-time buyer, I would take that view. The important thing is not to over-borrow. Be realistic about how much you can afford."

Aside from prices rises that can top £1000 a week, a second factor that may give encouragement to buyers considering a delay to a potential purchase is the current state of the rental market. An influx of buy to let investors in some areas has meant that rent prices are falling. As Dunsmore-Hardy said: "At the moment there's a glut in rental property and you may rent at a level that allows you to put something by."

The NAEA will publish its latest assessment of the market over the next fortnight and Dunsmore-Hardy said: "We will be forecasting that price increases will slow down in the last quarter of the year. Homes may be slightly overvalued, but at any point in a market cycle homes will be overvalued.