After experiencing one of the worst months on record in September, the UK housing market is proving it is certainly one thing - unpredictable. Following the dismal figures which came out of September, housing prices went through a bit of a contrast, as prices increased in October almost 2 per cent.

Halifax also reported house prices have fallen a net 1.2 per cent over the past three months to October. Halifax underscored this measurement as a better indicator of what is truly happening in the market compared to just a monthly figure, which can be more erratic.

Another housing market mainstay, Nationwide, reported earlier this week a 0.7 per cent decline took place in October.

The Bank of England figures from September were most revealing though, as net lending and mortgage approvals basically flat lined. This ignited more fears about a probable double dip in the housing market.

An economist for Halifax, Martin Ellis, commented on the activity within the market, saying: "An increase in the number of properties available for sale in recent months, together with a decline in demand, has put some downward pressure on prices in recent months.

"We do not believe that prices are set to fall sharply over a sustained period. Interest rates are likely to remain very low for an extended period, which will continue to support the improved mortgage afford ability position for homeowners. Low rates and stable employment levels are benefitting homeowners."

Howard Archer of IHS Global Insight asked a very insightful question about pricing, saying: "Does the 1.8% rebound in house prices in October reported by the Halifax significantly change our view that house prices are likely to soften by around 10% by the end of 2011? In a word, no.

"It is not inconsistent with our view that house prices will trend down gradually overall through the final months of 2010 and during 2011 rather than crash, to lose around 10% of their value. Having said that, there may well be significant volatility around an overall gradually declining trend."