The statistics show that asking price demanded by sellers over report period fell by an average of £1,993 implying that; "Sellers are now realising they have to compromise some degree of their gains in order to sell their properties," said Miles Shipside, Commercial Director of Rightmove.

The Rightmove conclusions correspond with other reports from Halifax and Nationwide Building Society. Halifax reported that annual house price inflation had fallen behind average earnings growth for first time since 2001.

The new figures have lead to UK firms becoming more optimistic about economy than they were three months ago, with companies such as Lloyds TSB expecting interest rates to be cut next month, leading to a general increase in economic confidence. However indicators show that there is a long way to go to attract many first-time-buyers (FTB).

Figures, based on mortgage value requests, released by financial comparison site Moneynet prior to last months slow down, gave average value of a property purchase for an FTB as £206,250, up from £194,961 two months earlier, a massive jump which could not possibly have been matched by equivalent wage increases. The recent slight price drop follows a long period of huge price increases, and with house price inflation a year ago topping 18%, equivalent to an average of £29,991, it may be some time before many FTBs feel able to enter market. A recent survey by Abbey highlights trepidation felt by FTBs with just over a third indicating that they wanted to buy a home within next year, but only 5% of these were actually confident that they would be able to.

National Savings and Investments (NS&I) Senior Savings Strategist Dax Harkins said: "Despite a recent cooling house market, house prices have continued to outstrip both savings rates and incomes over last year which means potential first-time buyers need to start saving sooner and harder to get into market."

Graduates are reportedly leaving university with debts of over £13,000. With advent of Child Trust Funds as a long term measure to assist with costs of higher education, there is pressure on financial providers to not only consider type of financial product they offer students, but to additionally review how they communicate complex terms to this young market and to ensure students have a solid understanding of personal finance market.

In response to widespread public concern and letters from its customers who have families, moneynet has published a comprehensive guide to those factors which affect student finance and university budgets, including realistic expectations and practical suggestions. Key recommendations include:

* Gathering as many savings as possible before university, through birthday and Christmas presents, summer jobs, part-time jobs and any other savings accounts * Shopping around for best deals on household insurance, current accounts and savings accounts * Bulk buying weekly groceries and being strict about spending, borrowing and lending

Richard Brown, Chief Executive of Moneynet said “We all understand importance of budgeting, but for students this can be especially difficult. Our Guide to Student Finance is designed to provide some simple help and advice aimed at making those years in higher education a bit more bearable.”