UK house prices fell by 0.9 per cent in December to an average of £160,063, according to the latest house price index from Halifax.
This represents a year-on-year decline of 1.3 per cent and means that prices fell by 0.1 per cent in the three months to December, compared to the previous quarter.
Halifax housing economist Martin Ellis says while there was a modest fall in prices during 2011, overall property values have held up well in the face of a worsening economic climate and considerable pressures on household finances.
He says: “If the UK can avoid recession, we expect broad stability in house prices in 2012. There is, however, considerable uncertainty regarding the prospects for the UK economy which will, to a large extent, depend on how events in the eurozone unfold.
“In addition, the extent to which households choose to reduce their debts will affect growth. As a result, the outlook for house prices is uncertain.”