A slight drop in house prices in December of 0.9 per cent took the overall drop across 2011 to 1.3 per cent, according to data from Halifax.
The bank's property index suggested that the housing market had remained surprisingly resilient in the past year and hinted at a broadly stable 2012 ahead.
The average house price at the end of 2011 stood at £160,063.
"If the UK can avoid recession, we expect broad stability in house prices in 2012," said Halifax housing economist Martin Ellis.
"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."
While Halifax's data shows a drop in house prices across 2011 a similar report from Nationwide suggested they had increased by one per cent, highlighting just how resilient the market was in the past 12 months.
Nationwide placed the average house price at the end of 2011 at £165,798.
London Property News
Tuesday, 10 January 2012
London Housing Market News: House prices dropped slightly in 2011
