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10 January 2011
Last updated at 03:52 ET
UK house prices have continued to slip, falling by 1.3% in December from the previous month, the Halifax has said.
The lender, part of Lloyds Banking Group, said it meant the average property ended the year 1.6% cheaper than at the beginning of 2010.
But it said the decline was less than falls seen in the second half of 2008.
Halifax said it expected "limited movement in house prices during 2011" as interest rates were "likely to remain very low for some time".
It said that signs of a reluctance to sell from some homeowners could halt the decline in prices.
The average UK house price now stands at £162,435, Halifax said.
Downward pressure The three-month on three-month comparison in prices, regarded as a less volatile measure of house prices, showed that prices were down 0.9% in the three months to December compared with the previous quarter.
The Halifax said that there was some uncertainty among house buyers and owners, despite continued low interest rates making homes comparatively affordable.
"Current signs that homeowners are becoming more reluctant to sell would, if continued, help reverse the imbalance between buyers and sellers," said Halifax housing economist Martin Ellis.
"Nonetheless, uncertainty about the economy, weak earnings growth and higher taxes could put some downward pressure on demand."
The figures come shortly after the Nationwide Building Society reported that prices rose slightly in December, but predicted that property values would dip in the first half of 2011.
Many commentators expect house prices to fall over the course of 2011, although Halifax is not alone in predicting little change in values over the year.
But some estate agents and other property market businesses have forecast falls of up to 5% this coming year, while other commentators and economists have suggested they could drop by more, possibly 10%.
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The lender, part of Lloyds Banking Group, said it meant the average property ended the year 1.6% cheaper than at the beginning of 2010.
But it said the decline was less than falls seen in the second half of 2008.
Halifax said it expected "limited movement in house prices during 2011" as interest rates were "likely to remain very low for some time".
It said that signs of a reluctance to sell from some homeowners could halt the decline in prices.
The average UK house price now stands at £162,435, Halifax said.
Downward pressure The three-month on three-month comparison in prices, regarded as a less volatile measure of house prices, showed that prices were down 0.9% in the three months to December compared with the previous quarter.
The Halifax said that there was some uncertainty among house buyers and owners, despite continued low interest rates making homes comparatively affordable.
"Current signs that homeowners are becoming more reluctant to sell would, if continued, help reverse the imbalance between buyers and sellers," said Halifax housing economist Martin Ellis.
"Nonetheless, uncertainty about the economy, weak earnings growth and higher taxes could put some downward pressure on demand."
The figures come shortly after the Nationwide Building Society reported that prices rose slightly in December, but predicted that property values would dip in the first half of 2011.
Many commentators expect house prices to fall over the course of 2011, although Halifax is not alone in predicting little change in values over the year.
But some estate agents and other property market businesses have forecast falls of up to 5% this coming year, while other commentators and economists have suggested they could drop by more, possibly 10%.
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