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1 February 2011
Last updated at 02:26 ET
House prices fell slightly last month, according to the latest survey from the Nationwide building society.
It says prices slipped by 0.1% in January, leaving them down 1.1% on a year earlier.
It meant the average UK home cost just over £161,600.
The Nationwide said the outlook for the market was "still highly uncertain" but forecast that house prices would stay static or drift a little lower during 2011.
"Demand for homes looks to have stabilised, albeit well below the levels prevailing before the crisis," said the Nationwide's chief economist, Robert Gardner.
"Interest rates remain at historic lows, and labour market conditions have stabilised - both factors that will provide support to the market. However, the continued uncertain outlook for the economy will probably continue to keep many buyers on the sidelines.
"At the same time, there are few signs of a glut of unsold homes building up on the market that would lead to a sharper price correction. Indeed, there are tentative signs that the volume of homes coming onto the market may be slowing."
Many commentators expect house prices to fall over the course of 2011.
While some estate agents and other property market businesses have forecast falls of up to 5% this coming year, other commentators and economists have suggested they could drop by more, possibly 10%.
A key issue in 2010 was that potential sellers started to outnumber would-be buyers, putting downward pressure on prices, particularly in the second half of the year.
That seems unlikely to change, given the current rationing of mortgage funds that is still being imposed by lenders.
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It says prices slipped by 0.1% in January, leaving them down 1.1% on a year earlier.
It meant the average UK home cost just over £161,600.
The Nationwide said the outlook for the market was "still highly uncertain" but forecast that house prices would stay static or drift a little lower during 2011.
"Demand for homes looks to have stabilised, albeit well below the levels prevailing before the crisis," said the Nationwide's chief economist, Robert Gardner.
"Interest rates remain at historic lows, and labour market conditions have stabilised - both factors that will provide support to the market. However, the continued uncertain outlook for the economy will probably continue to keep many buyers on the sidelines.
"At the same time, there are few signs of a glut of unsold homes building up on the market that would lead to a sharper price correction. Indeed, there are tentative signs that the volume of homes coming onto the market may be slowing."
Many commentators expect house prices to fall over the course of 2011.
While some estate agents and other property market businesses have forecast falls of up to 5% this coming year, other commentators and economists have suggested they could drop by more, possibly 10%.
A key issue in 2010 was that potential sellers started to outnumber would-be buyers, putting downward pressure on prices, particularly in the second half of the year.
That seems unlikely to change, given the current rationing of mortgage funds that is still being imposed by lenders.
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