The average UK house price dipped to its lowest level in six months in December, according to a new index.
UK property values fell by 0.6% or £1,789 month on month on average in December, taking the typical house price to the lowest level seen since June last year, Halifax said.
On an annual basis, average growth in property values slowed to 0.3%, down from 0.6% in November.
Amanda Bryden, head of mortgages, Halifax, said that average house prices fell by 0.6% in December, down £1,789 compared to November, with a typical property now costing £297,755, the lowest since June 2025.
The average UK house price in June 2025 was £297,157.
"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," Mr Bryden said.
"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," she stated.
"Further, mortgage rates are already reducing following the latest (Bank of England) base rate cut and there are an increasing number of lending options available for those borrowing at a higher loan-to-value," she added.
Ms Bryden said that "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%."
Northern Ireland continues to be the strongest-performing part of the UK for percentage house price growth, with a 7.5% annual rise, Halifax said.
By contrast, average house prices in London fell by 1.3% annually.
Karen Noye, a mortgage expert at wealth manager Quilter, said: "The end of the year often leaves the housing market short on urgency, and December was no exception".
"With many households having already mentally parked moving plans, the late timing of the budget added a further reason for buyers and sellers to pause, leaving activity limited as attention shifted towards the new year rather than pushing ahead before Christmas," she said.
"Against that backdrop, Halifax's figures showing prices falling by 0.6% over the month point to a market that was subdued rather than fundamentally weakening," she added.
In signs that pent-up demand is being released into the market, Rightmove reported this week that recorded its busiest December 26 for website visits in December 2025.
Rightmove said the most popular type of homes to be listed for sale were smaller properties with two bedrooms or fewer, which are often targeted by first-time buyers.
