However, an £80 billion Funding for Lending scheme launched last month has started to boost mortgage availability, the Bank of England said earlier this week.

In the five years before the financial crisis, terraced house prices shot up by 96%, making them the best-performing property type, when higher loan-to-value (LTV) mortgages were much easier to come by, said the study.

Martin Ellis, housing economist at Halifax, said properties such as bungalows and detached homes have probably held their value better because they are less reliant on the first-time buyer market.

He added: "One benefit of the decline in prices has been that flats and terraced houses can now typically be bought for less than £100,000 in some parts of the country. This is a far cry from five years ago when little was available below this price."

The study found that the price of a typical flat in the North, the West Midlands and the East Midlands now stands at just under £100,000, while a terraced house can be bought in the North and North West for just over £99,000 on average.

But by contrast, the price of a typical flat in London, where the market has remained relatively strong, is just over £250,000 and a terraced house costs more than £300,000 on average. In Wales, a terraced house or a flat now costs just over £104,000 on average, while someone in Scotland would need to pay just over £110,000 for these types of property.