UK house prices fall for fourth month in a row 

The average house price in the UK fells for the fourth month in a row in December, amid the cost of living crisis and higher interest rates hitting home.

In December, house prices fell by 1.5% compared to November, meaning the average house price is now £281,272, said Halifax. 

Halifax said uncertainty about how the cost of living will impact household bills along with rising interest rates, is slowing the housing market. 

The bank says it expects buyers and sellers to “remain cautious” over the coming year. 

December’s monthly fall was lower than the decline of 2.4% seen in November, even taking into account the expected seasonal slowdown, said Halifax mortgages director Kim Kinnaird. 

An annual basis shows house prices grew by 2% compared with December 2021 – the slowest rise since late 2019.  It was also lower than the 4.6% annual increase in November. 

It was also sharply lower than the 4.6% annual increase seen in November.

Ms Kinnaird said: “As we enter 2023, the housing market will continue to be impacted by the wider economic environment and, as buyers and sellers remain cautious, we expect there will be a reduction in both supply and demand overall, with house prices forecast to fall around 8% over the course of the year.”