With the VAT rise by 2.5% to 20% coming up on 4th January 2011,  this means that any invoices raised after this date must charge VAT at the higher rate. It is anticipated that the rise together with the continuing squeeze on disposable incomes may mean house prices continue to fall in 2011. However ongoing record low interest rates and the current constraints on housing supply may offset the impact of weakening disposable incomes.