UK House Prices Rise in December, Signaling Stabilization in Property Market

British house prices rise in annual terms in December for the first time in eight months, according to mortgage lender Halifax. This indicates a potential stabilization in the property market after higher borrowing costs took a toll. House prices saw a 1.7% increase compared to December 2022, with a monthly rise of 1.1% from November. The market experienced a boom during the COVID-19 pandemic, but demand dwindled as the Bank of England raised interest rates to combat rising inflation. However, recent weeks have seen a decline in mortgage rates, prompting some buyers to return to the market. Halifax Mortgages’ Director, Kim Kinnaird, attributes December’s price rise to a lack of available properties for sale. She also believes that the fall in mortgage rates could boost buyer confidence in early 2024. Though there are uncertainties surrounding the forecast due to the current economic climate, Halifax’s latest projection suggests house prices may fall between -2% and -4% in the coming year. Rival mortgage lender Nationwide reported a decline of 1.8% in house prices over the past 12 months, the largest drop in a year since the 2008 global financial crisis.