UK house prices unexpectedly drop in December - Halifax
By Michele Maatouk
Date: Thursday 08 Jan 2026
(Sharecast News) - UK house prices unexpectedly dropped in December, according to figures released on Thursday by Halifax.
House prices fell 0.6% on the month following a 0.1% decline in November, missing expectations for a 0.2% increase.
On the year, house prices rose 0.3% in December following a 0.6% jump the month before. Analysts were expecting an annual increase of 1.1%.
The average price of a property stood at £297,755 in December - the lowest since June 2025 - down from £299,544 a month earlier.
Amanda Bryden, head of mortgages at Halifax, said: "While this may feel like a subdued close to the housing market in 2025, overall activity levels were resilient over the last year and broadly in line with the pre-pandemic average.
"Various forces are poised to somewhat buoy the market heading into 2026. While December's monthly fall in prices was likely related to uncertainty in the latter part of the year, this should now be starting to unwind. Further, mortgage rates are already reducing following the latest Base Rate cut and there are an increasing number of lending options available for those borrowing at a higher loan-to-value.
"While affordability pressures persist, the house price to income ratio was at its lowest in over a decade in December, striking a positive note for those looking to purchase their first home.
"On this basis, and recognising the headwinds that may affect buying power - such as the slowing of wage inflation and flattening employment rates - we expect a modest rise in house prices during the year of between 1% and 3%."
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN