Yolande Barnes, head of residential research at Savills, said understanding the equitisation of property was the key to increasing transaction levels.
Research revealed that transaction levels were being floated by equity rich owners who had a decreased reliance on mortgages.
Because of the lack of affordability, there had been a shift from owner-occupied properties to the private rental sector.
Lenders should therefore look to other alternatives to lend.
Barnes said: "We have to get to grips with equitisation as the importance of equity flow represents a paradigm shift on how transactions will be performed in the future.
“This bear market does represent a threat to lenders. We may have to look at how to deal with permanently low levels of transaction.”
Barnes added that the market did hold opportunities for lenders.
She said the increased demand for private rental property represented a prime opportunity for an increase in buy-to-let transactions.
And she added: “Lenders should also be more willing to lend to alternative forms of co-ownership and collectives. Opportunities to do traditional business are going to decrease.
“Finally, equity release is also another area which needs to be looked at in order to accommodate the equity rich, cash poor and to get more equity flowing. There are certainly opportunities there.”
