People looking to buy a property this year are likely to feel the effects of the credit crunch, analysts have warned.
The liquidity crisis that hit the international financial markets at the end of last year is continuing to ripple through the economy.
It is widely expected to result in a more hostile lending environment this year as financial institutions look to reduce their exposure.
This could be bad news for anyone looking to buy a home, according to Simon Walker, sales director of the property portal Off-Plan International.
"Individuals will obviously be affected because of loan rates," he said. "It just depends on who the investor is.
"If someone is re-mortgaging to release equity it's not a good idea, if you are downsizing maybe it's a better idea."
Interest rates fell last month, but many lenders have failed to pass on the savings as they continue to suffer the effects of the liquidity crisis.
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