The price of the average UK home has fallen.
UK property prices are continuing to drop.
House prices fell by 1.3% between November to December leaving the average UK property 1.6% cheaper than at the start of 2010, according to figures revealed by the Halifax.
The average price of a house in the UK now stands at £162,435 with Halifax predicting that prices will remain low during 2011 as interest rates are expected to “remain very low for some time”.
The lender said that the decline could be reduced if fewer homeowners opt to put their house on the market.
Halifax housing economist Martin Ellis said: “Current signs that homeowners are becoming more reluctant to sell would, if continued, help reverse the imbalance between buyers and sellers”.
He added: “Nonetheless, uncertainty about the economy, weak earnings growth and higher taxes could put some downward pressure on demand”.
Although Halifax has predicted little change in the property sector over the course of the coming year, some experts have suggested that house prices could fall by up to 10%.
However, others have said that properties in certain areas of the UK are selling for the correct price.
James Scott-Lee, chairman of the Chancellors Group of estate agents said: “While there has been an easing down of prices, as supply has come through and demand has weakened, in certain towns and cities, not least the capital, the right type of property is still commanding the right sort of price”.
He added: “Poor quality properties in areas of oversupply are under real pressure but sought-after properties in areas of high demand are still performing well. The headline Halifax house price figure, as a national average, simply does not reflect the regional variations in prices”.