"I think some areas have reached their optimum value, and indeed some types of properties in areas whose prices have been inflated have seen falls since September and October.
"My opinion is that there won't be a crash, but the market is slowing and I don't see any rises for a while. People just aren't prepared to pay the high prices anymore.
"Negative equity might be a problem for first-time buyers who have bought at the maximum price, and for those who have bought to make a quick killing and are now left with an over-priced property no-one wants."
Negative equity - a scenario many thought had been consigned to history following the last housing market crash in the 1990s - could become a very real threat for those homeowners who have been relying on the supposed wealth in their property to fund their lifestyle.
Reinhard Schu, a spokesman for housepricecrash.co.uk - a website set up in November 2003 by a frustrated first-time buyer unable to get on the property ladder which offers unbiased advice - says: "Negative equity is a very real concern. Normally you would not be too worried as it would just be a change on paper and it would only affect those who need to sell, but of course a lot of people have used their homes to prop up their lifestyle."
Reinhard, a German-born solicitor based in London who works as a volunteer for housepricecrash.co.uk, believes house prices really levelled off two years ago, but the market since has been driven by what he calls a "speculation frenzy", with buy-to-let investors and those hoping to make a financial killing.
"We think prices will drop 10% this year and will continue to do so for the next two or three years."
For the 70% of homeowners expecting to use their house to prop up their pension, this will be dire news.
But if you are in over your head, what can you do? Reinhard says: "Stop using your home to fund your lifestyle and start repaying some of the debt. Remember, taking equity out of your home is additional debt - it still has to be repaid.."
Mr Rounsfell adds: "If you are really worried move to a fixed rate mortgage so you know exactly how much you are paying each month. Sooner or later the market will come around."
