House prices in Britain recovered in December after three monthly falls in a row, a survey by the country's biggest mortgage lender shows today. The data eases fears of a precipitous decline in the property market.
The Halifax survey showed house prices rose 1.3% on the month, taking the three-month rate of inflation compared with a year earlier to 5.2%, the lowest in nearly two years, and the average house price to £197,039 sterling.
Analysts had forecast a fall of 0.5% on the month and a decline in the three-month rate of house price inflation to 4.9%.
The findings contrasted with other recent surveys which have shown month-on-month house price falls. Nationwide reported a 0.5% fall in house prices last month following a 0.8% decline in November.
However, Halifax revised down the prior month's reading to show a 1.3% fall - from a 1.1% fall previously - meaning December's recovery merely erased November's losses.
Halifax said that UK house prices in 2007 as a whole rose by 5.2%. It said this was only the second year since 2001 that prices had risen by less than the long-term average of 8%.
