Just as property prices can soar when the economy is strong, consumer confidence is high and buyers are competing for the properties on sale, there will be times when property prices do the opposite, as they are now.

Historically, properties in the UK have grown in value over 10-year periods, but in the short term there can be blips in the market spanning months or years. Market blips can see property prices stagnate or even fall, as we are experiencing this year. There are three reasons for the falling market.

The credit crunch has slowed the economy. Buyers are finding it harder to get mortgages, so there are fewer buyers than in previous years.

Some properties have become oversupplied, such as flats in some city centres, typically outside of London.

Sellers are not reducing their prices enough to attract buyers who are able to purchase.

These problems are exacerbated by media headlines that regularly report property price falls from national surveys. Although these reports don't necessarily cause property prices to fall further, they make the problem worse by reducing consumer confidence and buyers hold off buying in case prices fall further, which they inevitably do.

The picture which is painted in the media is based on "average property prices" across the UK, and therefore these averages rarely reflect what is happening with an individual home in a certain street.

So it's important to understand what is happening locally, rather than worrying about national property price reports. Although the current property market might not be ideal for everyone, if you're a first-time buyer or trading up, you could actually be at an advantage at the moment.

First-time buyers are one of the biggest buyer groups, and have nothing to sell so have less competition finding a property.

If you're a first-time buyer and you do your homework properly, you could even bag a bargain, especially now that stamp duty has been frozen for a year on properties valued up to £175,000.

Any seller who is trading up to a new property and has a reasonable amount of equity in their home should also gain overall.

If you're trading up you may lose, for example, 10 per cent on your own property worth £150,000, which could leave you with a £15,000 deficit, but buy another property worth £250,000 at a 10 per cent discount and you could save £25,000, leaving you to benefit from a difference of £10,000.

If you're a buyer who's keen to find a bargain, you'll need to "property watch" for a while.

I recommend that you find five properties that you are interested in and make offers on all of them, making sure you let all parties know this is what you're doing, and see who comes back with the best deal. Preferably, these properties should have sellers who need to move for a reason: they have already found a new home and therefore have a strong incentive to move, or who have had their property on the market for some months and are likely to take an offer.

It's also worth considering buying new-build properties as developers are more likely to be realistic about their prices as they compete for buyers, and developers have to sell their homes to survive!

During a falling market you could get good deals on new-builds that are promoted as the "last few remaining" or on the first properties on a new site, as the developer will be keen to show they've already sold.

For those people trying to sell their homes at the moment, the property market is not ideal. But, if you do need to sell there are several ways to help ensure your property finds a buyer.

Carefully choose an estate agent who's experienced at selling property in a slow market.

Present your property well, making sure it has good "kerb appeal" and is clean, tidy and clutter-free.

Price your property realistically. Trying to get the "top price" for your property could mean you don't sell for months and then have to drop your property price even further.

Even if you receive a low offer, consider accepting if it allows you to move into your next home.

Consider the idea of buying a new home from a reputable company that will offer to part-exchange yours.

Have an RICS surveyor look at your home so you can show people that it's worth what you are asking, and that there is nothing to do on the property. If work does need doing, get it done to a good standard, or price the property accordingly.

But, sellers should be aware that there are some companies offering to buy your property for "cash" while others will offer to buy your property from you and then rent it back.

Although some of these companies offer fair schemes, others offer a much lower price than the property is really worth.

Some agree that you can rent the property for as long as you want, but then serve notice for you to move out within months of buying your property.

Never sell to these companies unless you first get an independent survey from a surveyor or you use your own legal company to get advice on the deal – do not use the legal firm recommended by the cash buyer.

Kate Faulkner is the author of Buy, Sell and Move House available from www.which.co.uk or from bookshops.