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UK house prices unexpectedly fell in December, while annual growth slowed, numbers from Halifax showed on Thursday. House prices dipped by 0.6% in December, with the average price falling to £297,755 from £299,544 in November, the lowest price since June. A rise of 0.2% was expected for December, according to market consensus cited by FXStreet. Annual house price growth slowed to 0.3% in December from 0.6% in November. ‘While this may feel like a subdued close to the housing market in 2025, overall activity levels were resilient over the last year and broadly in line with the pre-pandemic average,’ Halifax analyst Amanda Bryden said. ‘Various forces are poised to somewhat buoy the market heading into 2026. While December‘s monthly fall in prices was likely related to uncertainty in the latter part of the year, this should now be starting to unwind. Further, mortgage rates are already reducing following the latest base rate cut and there are an increasing number of lending options available for those borrowing at a higher loan-to-value.’ Bryden said the house price to income ratio was at its lowest in over a decade in December. Bryden added: ‘On this basis, and recognising the headwinds that may affect buying power such as the slowing of wage inflation and flattening employment rates we expect a modest rise in house prices during the year of between 1% and 3%.’ Last Friday, the Nationwide house price index showed UK house price growth cooled to 0.6% year-on-year in December from 1.8% in November. The building society said house prices fell 0.4% in December on-month, reversing a 0.3% gain in November and compared to market consensus which predicted a 0.1% rise. This left the average UK house price at £271,068 in December, down from £272,998 in November. Copyright 2026 Alliance News Ltd. All Rights Reserved.
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