"Ending the year, house prices in December fell by 0.6%; the first monthly decline in six months."
Its latest house price index shows that annual house price growth eased to 2.7% in the last three months of 2017, lower than the 3.9% growth recorded in November.
Q4 prices were 1.3% higher than in the previous quarter, down from 2.3% recorded in October and November.
On a monthly basis, prices fell by 0.6% from November following a 0.3% increase in both October and November, the first fall since June 2017.
Russell Galley, Managing Director at Halifax Community Bank, said: “House prices in the three months to December were 1.3% higher than in the previous quarter; a gradual slowdown from 2.3% in both October and November. The annual rate of growth has also moderated to 2.7% from November’s 3.9%. Ending the year, house prices in December fell by 0.6%; the first monthly decline in six months.
“As we’d anticipated, the housing market in 2017 followed a similar pattern to the previous year. House price growth slowed, whilst building activity, completed sales and mortgage approvals for house purchase all remained flat. This has been driven by a squeeze on real wage growth and continuing uncertainty over the economy.
“However, 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 2018.”
Jeremy Leaf, north London estate agent and former RICS residential chairman, commented: "Once again, we are seeing confirmation of a slowing rather than collapsing market, which is showing plenty of resilience for those prepared to negotiate hard. There is no doubt that prices are softening, particularly in London, but Halifax also confirms what we are seeing on the high street - that a lot of hard bargaining is going on and people are generally trying to get on with their moves.
"We don’t expect to see any great change in the next few months but the realistic players will succeed, whereas those wedded to the idea of the housing market we have seen in previous years will simply not sell."
