UK house prices slipped back for the first time in nine months even as the property market enjoyed its best year since the pandemic, according to one of the country’s largest mortgage lenders.

British house prices dropped unexpectedly last month for the first time since March although they finished the year higher than in December 2023, figures from mortgage lender Halifax showed on Tuesday.

House prices dropped by 0.2% in December compared to the previous month, breaking a streak of five consecutive monthly increases, according to Halifax. Despite the slight decline, annual property prices rose by 3.3%, with the average UK house price reaching £297,166.

The average house cost £297,166, down by 0.2% from November, following five consecutive monthly increases, according to Halifax. On an annual basis, prices were up 3.3%, down from 4.7% growth in November. Northern Ireland showed the strongest annual house price growth in the UK, up 7.4%, to an average of £205,895.