Figures from Halifax show that house prices in Britain fell in December for the first time in six months. The data are seen as providing the first hint that higher borrowing costs may be taking their toll on the property market.
Halifax, Britain's largest mortgage lender, said house prices fell 1% in December after a downwardly revised increase of 1.6% in November. But the three-month annual rate still picked up to 9.9% - its highest since February 2005 - from November's 9.6%.
Halifax chief economist Martin Ellis said it was too early to conclude December's fall was the start of a genuine slowdown, but it did suggest higher interest rates were making buyers more wary.
The Bank of England raised interest rates by 0.25 points in August and again in November to a five-year peak of 5%.
Friday's survey contrasted with other housing indicators which have continued to show the market in rude health. Data on Thursday showed mortgage approvals - a forward looking indicator for house prices - rose in November at their fastest rate in almost three years.
