Home prices in the UK have been flat over the last six months creating an atmosphere of continued concern over the housing market. It is being described now as "treading water". According to recent figures from the Nationwide building society, the momentum of falling home prices is coming to an end.

The average UK home price now sits at just above 161,000 pounds.

Nationwide’s chief economist, Robert Gardner, commented on the slow down trend, saying: "This shouldn't come as too much of a surprise. Housing market trends are closely linked to wider economic prospects.

"Demand for homes has leveled out, supported by historically low interest rates and some stabilisation in the labour market."

The fall in home prices is not over, as many economists have predicted an additional 10% drop over the course of this year.

Gardner has a different opinion. He estimates there will continue to be a slow sales year, and prices will only be slightly lower by the end of this year.

Lenders are expected to maintain their strict lending practices to protect their own interests and minimize the risk potential. This will just aid in undermining prices.

Gardner continued to discuss the sellers’ apparent attitude regarding current sales transactions, saying: "Sellers remain reluctant to accept lower prices to secure a sale.

"In fact there are tentative signs that the volume of homes coming onto the market is slowing."

Howard Archer, chief economist at IHS Global Insight, commented on the possibility of a rise in the base rate, saying: "The very real likelihood that the Bank of England will start raising interest rates sooner rather than later can only add to the pressure on housing market activity and prices."