House price growth halved to 0.3 percent in December from 0.6 percent in November. Average property price was GBP 297,755, which was the lowest since June.

Month-on-month, house prices dropped 0.6 percent, worse than November's 0.1 percent fall. This was the second consecutive fall in prices.

Further, Halifax noted that mortgage rates are already reducing following the latest Base Rate cut and there are an increasing number of lending options available for those borrowing at a higher loan-to-value.

Although affordability pressures persist, the house price to income ratio remained at its lowest in over a decade in December, striking a positive note for those looking to purchase their first home.

Halifax expects moderate rise in house prices during the year of between 1 percent and 3 percent.

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