House price growth slows as demand eases

On the month, however, prices were up by 0.9 per cent, the biggest monthly increase since last July
On the month, however, prices were up by 0.9 per cent, the biggest monthly increase since last July
GETTY IMAGES

The rate of annual house price growth slowed in December, in a further sign that the demand for homes could have peaked amid waning affordability and the possibility of an interest rate rise.

House prices grew at an annual pace of 7.8 per cent last month, down from a peak of 10.2 per cent in July, and the weakest since January last year. The average price of a house in the UK is now £188,858.

However, on the month, they were up by 0.9 per cent, the biggest monthly increase since last July, according to Halifax.

Economists had expected prices to rise 8 per cent on the year and 0.3 per cent on the month.

Martin Ellis, housing economist at the banking society, said that