The average house price in the UK fell by 1.5% in December, according to the latest monthly report from Halifax.
It’s the fourth consecutive monthly fall and means that the average house price across England, Scotland, Wales and Northern Ireland is now £281,272, down from £285,425 in November.
The rate of annual growth also declined to 2%, from 4.6% a month ago, with a slowdown seen in all nations and regions.
The market has been hit by rising mortgage rates and uncertainty over how increases in the cost of living will impact household bills.
Kim Kinnaird, director of Halifax Mortgages, said that buyers and sellers are likely to “remain cautious” in 2023, leading to a reduction in both supply and demand. House prices are forecast to fall by around 8% over the course of the year.
However, the cost of the average home remains high — greater than it was at the start of 2022 and over 11% more than house prices at the beginning of 2021.
“It’s important to recognise that a drop of 8% would mean the cost of the average property returning to April 2021 prices, which still remains significantly above pre-pandemic levels,” Kinnaird added.
