House prices fell 2.5% in May, according to Nationwide - the largest monthly drop since the building society began taking records in 1991. The fact that the comparison pre-dates the house price crash of the 90s, amplifies the drama of the statistic even further.

According to the BBC, at least 28% of us will be pleased to hear this news - the ratio who admitted in a recent poll that they want house prices to fall. Only 22% hope house prices carry on rising. Despite the doom-laden predictions of the media, many can and will benefit from a wholesale fall in UK house prices.

Who is most likely to benefit?

1. First-time buyers

Figures from Halifax reported a 187% increase in the average house price between 1996 and 2006, with the outcome that many first-time buyers were pushed out of the market. With price falls almost certain this year, first-time buyers can feel more positive. Mortgages will be harder to come by, with approvals down nearly 50% on 2007, but the predicted base-rate cut could reverse this trend and housing will be increasingly affordable.

2. Investors

Although conditions are as tough on investors as anyone else, those with sufficient capital have an opportunity to make a greater return in the long term. A weakening property market also creates opportunities for foreign investors - much like the British investors who are picking up bargains in places like Florida at the moment.

3. Upsizers

When prices are falling, it may not seem like the ideal time to upsize to a larger home, but smaller properties are usually disproportionately priced compared with larger ones. If you are trading up, the house you are selling will lose less value than the larger one you are buying - so making the move now could prove profitable.

4. Cash buyers

Those able to buy property with cash are few and far between, but if the mortgage situation stays the same - fewer approvals, with lower salary multiples - they could become the only ones able to finance a property purchase. Cash buyers can also move in quickly - an attractive trait for those wishing to sell quickly.

5. Landlords

In the wake of Bradford & Bingley reporting huge losses on Monday, now is not the time to enter the buy-to-let market. However, for anyone who is already a landlord, things could pick up. According to Paragon Mortgages, rental incomes rose 3.8% between January and April this year. As the UK's economy and housing market continues to be unpredictable, many renters will retain their current status rather than get on the property ladder.

The bigger picture

Of course, not everyone's going to benefit. The fall in house prices comes on the coattails of an economic slowdown, with a crunch on credit and a sobering forcecast for the price of food and petrol. So it's not a rosy picture for any of us - but a squeeze on the economy always yields some positives, encouraging sensible spending and saving habits.

For those not in the above categories, the biggest risk is negative equity - where the value of a property is less than the mortgage amount. According to Citigroup, a quarter of a million British householders are now in this situation, and this could reach 1m if Citigroup's prediction of a 15% fall in house prices by the end of 2009 is accurate.