LONDON, Jan 5 (Reuters) - British house prices rose in annual terms in December for the first time in eight months, mortgage lender Halifax said on Friday, adding to signs of a stabilisation in the property market after a hit from higher borrowing costs.
House prices were 1.7% higher than in December 2022, Halifax said.
In monthly terms, prices rose by 1.1% from November.
Britain's housing market boomed during the COVID-19 pandemic before demand fell as the Bank of England pushed up interest rates to counter a surge in inflation across the economy.
However, a fall in mortgage rates in recent weeks has prompted some buyers to return to the market.
BoE data published on Thursday showed lenders approved the
most mortgages
in November since June.
Kim Kinnaird, director at Halifax Mortgages, said December's price rise was probably driven mostly by a lack of properties on for sale but the fall in mortgage rates raised the possibility of increased confidence among buyers in early 2024.
"Our latest forecast suggests house prices could fall between -2% and -4% during the coming year, although, as with recent years, forecast uncertainty remains high given the current economic climate," Kinnaird said.
Last week, rival mortgage lender Nationwide said its data showed
a fall of 1.8%
in house prices in the 12 months to December, the biggest decline over the course of a year since 2008 during the global financial crisis. (Reporting by William Schomberg; editing by William James and Kate Holton)
