UK house prices fall for fourth consecutive month

UK house prices have fallen for the fourth consecutive month as rising borrowing costs hit household finances, according to data published on Friday.

Average house prices dropped 1.5 per cent between November and December, said mortgage provider Halifax. The decline marks a slowdown from the 2.4 per cent drop recorded between October and November.

The annual rate of house price growth slowed to 2 per cent, down from 4.6 per cent in the previous month.

The typical property price in the UK fell to £281,272 in December, down from £285,425 in November.

“Uncertainties about the extent to which cost of living increases will impact household bills, alongside rising interest rates, is leading to an overall slowing of the market,” said Kim Kinnaird, director at Halifax Mortgages.

Mortgage rates, which reflect expectations of medium-term borrowing costs, have surged in the past few months, following a series of interest rate rises by the Bank of England in an attempt to tackle high inflation.