Annual UK house price growth slowed last month, numbers from mortgage lender Halifax showed Tuesday.

House prices rose 3.3% on-year in December, easing from a 4.7% expansion in November. It was the slowest rate of year-on-year price growth since July.

On-month, prices fell 0.2%, declining for the first time since March. House prices had risen 1.2% in November from October.

‘Where does that leave the housing market for 2025? While the housing market has been supported in recent months by falling mortgage rates, income growth and the announcement on upcoming stamp duty policy changes, mortgage affordability will remain a challenge for many, especially as the bank rate is likely to come down more slowly than previously predicted. However, providing employment conditions don’t deteriorate markedly from a more recent softening, buyer demand should hold up relatively well and, taking all this into account, we’re continuing to anticipate modest house price growth this year,’ Halifax analyst Amanda Bryden said.

From the end of March, the temporary increase in the nil rate stamp duty thresholds will end. For first-time buyers of a home under £500,000, the nil rate band falls to £300,000 from £425,000 currently.

For other home buyers, the nil rate band threshold is to decline to £125,000, from £250,000. The measures were announced by Chancellor Rachel Reeves in the October autumn budget.

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