The increasing trend for investing in buy-to-let property has had a 'catastrophic' effect on the first time buyer market, one commentator has suggested.

First time buyer specialist Firstrung has asserted that as many as a million young buyers could have been priced out of the market by landlords, in a situation that it believes has been going on for so long that the government can no longer intervene.

However, Paul Holmes, chief executive officer of Firstrung, asserted that rising inflation will eventually correct housing prices - in news like to be welcomed by those seeking a new home.

"We'll exit the year with rates of six per cent in December," Mr Holmes forecasted.

"That's quite a dramatic shift and will have enough of an impact to firstly cause the housing market to run out of steam and secondly correct house prices."

In other news, Firstrung has asserted that stamp duty has been "incredibly overrated" as an obstacle to buying a new home, with first time buyers in London the only group likely to be affected by the tax.