Annual and quarterly house price growth fell further in December, says Halifax, despite prices in December rising marginally.
Prices were up by 0.9% in December, compared to November, and by 0.3% over the quarter. However, annual price growth fell to 7.8% from 8.1% in November.
At their peak in July 2014, prices were up by 10.2% annually. The quarterly rate of increase has also fallen for five consecutive months.
Both sales of properties and mortgage approvals have fallen in recent months, and Halifax is forecasting a “moderation” of prices in 2015.
'Moderation' in the market
[SPOTLIGHT]Martin Ellis, Halifax’s housing economist, said: ““The deterioration in housing affordability as a result of rising house prices, earnings growth that has been consistently below consumer price inflation until very recently and speculation of an interest rate rise, have combined to temper housing demand since the summer.
“The weakening in housing demand has led to a reduction in both price growth and sales in recent months.
"We expect a further moderation in house price growth over the coming year with prices nationally predicted to increase in a range of 3 to 5% in 2015. Housing demand, however, should continue to be supported by a growing economy, rising employment levels, still low mortgage rates and the first gain in ‘real’ earnings for several years."
Nationwide has also reported annual price rises falling over the past few months, down to 7.2% in December.