London: British house prices rose in annual terms in December for the first time in eight months, data from mortgage lender Halifax showed on Friday (Jan 5), adding to signs of a stabilisation in the property market after a hit from higher borrowing costs.
House prices were 1.7 per cent higher than in December 2022 – when the market was hammered by the “mini-budget” crisis of former Prime Minister Liz Truss.
In monthly terms, prices rose by 1.1 per cent from November, Halifax said.
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.