UK house prices drop for 4th straight month in December

By Aysu Bicer

LONDON (AA) – House prices in the UK slipped nearly 1.5% month-on-month in December, according to data released by lender Halifax on Friday.

On an annual basis, house prices were up 2%, marking the slowest rise since October 2019.

A typical property in Britain now costs around £281,272 ($339,000) on average.

“The fall in December was lower than the monthly decline of 2.4% recorded in November, even taking into account seasonal slowdown driven by the festive period,” Kim Kinnaird, director at Halifax Mortgages, said in a statement.

Uncertainties about the extent to which cost of living increases will impact household bills, alongside rising interest rates, is leading to an overall slowing of the market, the statement said.

In its UK Housing Market Review and Outlook for 2023, Halifax said the market was now rebalancing after witnessing the biggest rises in home prices on record.

Prices are expected to go down nearly 8% in 2023 as increasing costs of living put pressure on household finances, the lender said.