Conveyancing solicitors moved to calm concerns over a looming housing crash this week, and suggested that a fall in house prices could have a ‘silver lining’ for the profession.

Last week, the Halifax reported a 3.6% decline in house prices in September, the biggest monthly fall reported by the lender in 27 years.

However, leading property lawyers said the profession should not be alarmed by the figures.

Law Society property spokesman Paul Marsh said: ‘The press are causing alarm and despondency over the prospect of a housing crash, while estate agents want to talk the market up. From the average conveyancing solicitor’s perspective, it is far too early to say.

‘These figures are only tracked on a national basis. It is clear to me as a conveyancing solicitor that the market conditions are very variable depending on where you are in the country.’

Marsh said that, in the past three years, the volume of transactions has reduced by 50%, but some transactions still had to take place, for example probate sales.

He said: ‘It is the volume of transactions that affects solicitors, rather than the price. If the market finds its level, that is very good news for us as it could lead to a rise in transaction levels.’

A drop in house prices could potentially increase the number of people who are able to enter the market.

Richard Barnett, chair of the Law Society’s land law and conveyancing committee, said that a house price fall might attract private investors in the UK and abroad, boosting the number of transactions and providing a ‘silver lining’ for solicitors.

He added: ‘It is a nervy market, and the government must ensure that the lenders are offering mortgages. But it is not as bad as 1988, when there was no confidence in the market. I think this will be an L-shaped recession, and we are currently going along the bottom.

‘New entrants to the market in the form of alternative business structures will present more difficulties for conveyancers next year. These are challenging times.’