Figures from the Halifax confirm that UK house prices grew much more slowly in 2017 than in 2016, according to BBC News.
Halifax, the UK’s largest mortgage lender, said average prices rose 2.7% in 2017, as opposed to a 6.5% increase in 2016. This represents the lowest rise since 2012 on a calendar year basis.
The lender says that sluggish real wage growth and ongoing uncertainty about the nation’s economic future had contributed to the slowdown. The average property price at the end of 2017 was £225,021.
Halifax said that in December 2017 house prices fell by 0.6%, the first monthly decline on record since June 2017.
Russell Galley, managing director of Halifax Community Bank said: “Nationally house prices in 2018 are likely to be supported by the ongoing shortage of properties for sale, low levels of housebuilding, high employment and a continuation of low interest rates making mortgage servicing affordable in relative terms.
“Overall we expect annual price growth to continue in the range of 0-3% at the end of 2018.”