The number of people moving home is now at its lowest point since records began in 1978, the Royal Institution of Chartered Surveyors has revealed.
The body revealed there were just 15.3 transactions per surveyor in the three-month period to the end of June, with many potential buyers unable to get mortgages.
But this means it could be a good time for those who are able to get mortgages or those looking to invest cash in property to buy.
"With demand so low, would-be buyers are negotiating from a position of strength," said Jeremy Leaf, a spokesperson for RICS.
"Even in a weak market there are always opportunities for investors and buyers to profit and some are starting to circle for bargains."
Some surveyors also suggested that buy-to-let investors were also snapping up property to take advantage of a buoyant rental market as house prices continued to fall.
Data from The Halifax suggested that prices fell by 2% in June while Nationwide indicated there had been a fall of 0.9%.
Meanwhile, the Council of Mortgage Lenders has unveiled a plan to boost the mortgage market and encourage banks and building societies to offer new loans.
The proposals involve the Bank of England guaranteeing a market in mortgage-back securities and bonds that would result in money returning to the market which could then be used for new lending.
"A year into the credit crunch, there is no merit at all in waiting until the autumn before taking steps that will help the housing market to remain more resilient," said CML director general Michael Coogan.
