Property prices were up over 2023 as a whole, according to Halifax.
The UK’s largest lender said that prices rose by £3,000 between November and December (1.1 per cent) to reach £287,105.
This was the third consecutive monthly rise in prices, taking the quarterly change to 1.2 per cent.
Over the year as a whole, prices rose by 1.7 per cent, according to Halifax, despite falling for six months in a row up to September.
Kim Kinnaird, director of Halifax Mortgages, said: “The housing market beat expectations in 2023 and grew by +1.7 per cent on an annual basis. The average property price is now £4,800 higher than it was in December 2022.
“Whilst it’s encouraging that we saw growth in the last three months of the year, this was preceded with property price falls for six consecutive months between April and September. The growth we have seen is likely being driven by a shortage of properties on the market, rather than the strength of buyer demand.
“That said, with mortgage rates continuing to ease, we may see an increase in confidence from buyers over the coming months.”
Sarah Coles, head of personal finance at Hargreaves Lansdown, added: “Falling mortgage rates could well inject a little more enthusiasm into the market, Bank of England figures show that more than 50,000 mortgages were approved in November, and while that’s still well below a typical month of 60,000, it has come off the bottom.
“Mortgage rate cuts in the months since – which have seen -two rates fall below six per cent – may well help inspire more buyers.”
Regional variance
Across all the UK regions, Northern Ireland recorded the strongest house price growth in 2023, as properties increased by 4.1 per cent to £192,153.
Scotland saw property prices increase by 2.6 per cent to £205,170. At the other end of the scale, the South East fell most sharply. Houses there now average £376,804, down 4.5 per cent), or £17,755.
The North West (0.3 per cent), and Yorkshire and Humber (0.1 per cent) saw modest house price increases over the last year.
London has the highest average house price across all the regions, at £528,798, although prices in the capital declined by 2.3 per cent in 2023.
