House prices fell for the first time in nine months. The fall of 0.2% was on a monthly basis, and between November and December last year.

That’s according to the latest housing data from the Halifax which showed the cost of the average property sat at £297,166 in December. However, despite the fall, property is still 3.3% higher than the same period last year.

Northern Ireland saw the biggest annual increase in house prices, at 7.4%. Next was the North West with 5.3% and the North East at 4.6%. The lowest annual increase in the average property value – 0.2% – was in Scotland.

Halifax and Nationwide collide over data 

The Halifax results are in sharp contrast to Nationwide’s data. The latter reported that property had, in fact, gone up by 0.7% between November and December. Halifax sample 3,000 more data points than Nationwide and these are larger in northern parts of England, accounting for some of the discrepancy.

Amanda Bryden, head of mortgages at Halifax, attributed the higher figure in November and earlier in the year to increased demand. This, she said, had been triggered by the lowering of mortgage interest rates together with an increase in wages and the lowering of price inflation.

“Providing employment conditions don’t deteriorate markedly…buyer demand should hold up relatively well and, taking all this into account, we’re continuing to anticipate modest house price growth this year,” she added.

Developers noted increased demand after rates cut

York-based house developers Persimmon confirmed it had seen an increase in buyer demand when mortgage interest rates had first fallen in summer last year. Its total sales for 2024 was around 15,500 properties. This was almost 600 more properties than the previous year.

The Bank of England is expected to reduce its base rate further this year, prompting mortgage lenders to reduce interest rates. Certain lenders, such as HSBC, Halifax and the Leeds Building Society have already reduced mortgage interest rates this month in anticipation of future Bank of England rate cuts.

Other factors expected to affect the market in 2025 is the ceasing of the current Stamp Duty relief options at the end of March.