We're no Mystic Meg, however we do want to draw your attention to the recent (and somewhat varying) house price predictions from some of the property market experts:

• The NIESR says house prices will fall 10.5 per cent in real terms over five years, down 4.5 per cent this year and 1.5 per cent in each subsequent year.
• Rightmove says asking prices will slip in 2011 - predicting a 5 per cent fall over the year
• Howard Archer, chief UK economist at analysts IHS Global Insight, suggests prices will be 10 per cent lower than their mid 2010 levels by the end of 2011
• RICS forecasts a 2 per cent fall in house prices in 2011, but says property will not dip by more than 5 per cent
• Halifax and Nationwide predict prices to be flat in 2011
• Hometrack forecasts a 2 per cent decline in 2011

What we do know is that due to lenders making it much tougher to take out cheap interest-only loans (which have helped prop up the property market) the reduction in credit will exert downward pressure on prices.

However while falling property prices has brought tough times for those who have seen equity slashed, fallen into negative equity or even had their homes repossessed, there are others who are pleased that prices are falling. Lower property prices are a boon to first-time buyers and those moving up the property ladder, but only if they can raise the substantial deposit needed to take advantage.