UK house prices grew at the slowest pace since April 2024 largely due to the high base effects, data from the Nationwide Building Society showed on Friday.
House prices posted an annual growth of 0.6 percent in December, which was weaker than the 1.8 percent rise in November.
On a monthly basis, house prices dropped 0.4 percent, in contrast to the 0.3 percent increase seen in November.
Stamp duty changes that took effect at the beginning of April created volatility through the spring and summer. Transactions spiked in March to avoid additional tax and activity softened in the following months.
Affordability constraints eased somewhat with house price growth well below the rate of earnings growth and a steady fall in mortgage rates.
Nationwide expects house price growth to be broadly in the 2 percent to 4 percent range.
In the fourth quarter, average house prices grew 0.7 percent sequentially and advanced 1.7 percent from the same period last year.