Surprise drop in house prices

House prices dropped 1% in December, a survey by the Halifax showed.

This takes the annual growth rate to 9.9%, and compares with a 1.7% monthly rise in November when the annual rate was 9.6%.

The country’s largest mortgage lender said the cost of an average home fell to £186,035 in December.

Experts believes that a combination of higher interest rates, increase inflation, higher household utility bills have but greater pressure on household finances which has helped subdue house price growth.

Expects are now predicting house prices to increase by 4% this year.