At the end of 2010, the average house price was just over 1.5% cheaper than it was at the beginning of the year. At the moment, the average price of a house to buy in the UK is £162,435.

Some experts believe that any change in house prices in 2011 is likely to be minimal, as interest rates set by the Bank of England and other lenders should remain around their current low levels for the foreseeable future.

If people become hesitant about selling their houses, this could help to stabilise the average price of a home. While house prices fell by close to 1% for the last quarter of 2010 compared to the third quarter of 2010, it is believed that people are hesitant to get stuck into the housing market, whether it be as a buyer or a seller, even though the current low rates of interest making it arguably more affordable now than it has been for some time.

Some analysts speculate that the doubt surrounding the recovery of the economy, along with increasing taxes are contributing to reducing demand. Confusion remains as to what exactly is in the immediate future for the housing market. There seem to be two main schools of thought regarding house prices; one group think that prices will fall over 2011, with the other group thinking that there will be a small (if any at all) change in house prices.

One thing that is becoming increasingly evident is that there is becoming a significant difference in house prices in different parts of the UK. In general, in the South of England and London particularly, house prices are likely to remain strong, with some areas actually seeing a rise in average house prices. Further North in the UK will be quite the opposite, with the market getting weaker and house prices expected to fall even further.