UK Halifax house prices below expectations, suffer first fall since August

Data released by mortgage lender Halifax on Tuesday showed that British house prices in January suffered their first fall in monthly terms since August 2015, shortly after June's Brexit vote. It was a latest sign of a slowdown in U.K.'s housing market.

Halifax said U.K. house prices fell 0.9 percent month-over-month in January after a 1.6 percent surge in December. January's data missed expectations in Reuters poll for house prices to remain flat on the month. Annual house price growth cooled to 5.7 percent, down from 6.5 percent in December and again weaker than the Reuters poll forecast at 6 percent.

House prices fell £2,000 in January after a £3,500 jump in December. House prices stand at 5.74 times wages, according to Halifax’s house price to earnings measure. House prices are up £7,783 on a year ago and £3,534 on June, the month of the Brexit vote, according to Halifax.

"Weaker economic growth and increasing pressure on spending power, along with affordability constraints, are expected to dampen housing demand, resulting in some downward pressure on annual house price growth during the year," said Martin Ellis, Halifax housing economist.