UK house prices are predicted to end this year at 2% lower than on December 31, 2010, and completion rates are likely to remain flat, according to predictions by the Royal Institute of Chartered Surveyors in a report which is unlikely to lift the gloom of house purchase solicitors and others in residential conveyancing and property businesses.

However, the respected RICS UK Housing Market Forecast, released in late December, says that although prices may slip in the coming months, falling supply should enable the market to stabilise. In the second half of 2011 values could well start to creep up again to balance out the dip at the start of the year.

There is a worry that public spending cuts and consequent unemployment may hit the market but the surveyors' organisation suggests this will not cause prices to drop by more than 5% because of the lack of supply of homes for sale.

The continuing lack of mortgage finance, especially for first-time buyers, is one of the key factors in increasing the volume of residential conveyancing transactions, which are expected to remain at the same levels as 2010 of about 900,000.

One property law area where conveyancing solicitors may see less work is in repossessions due to mortgage arrears. If the trend towards the end of 2010 is maintained, the annual figure should drop by about one-twelfth.