It is claimed that the decrease in house price growth will stem from continued uncertainty with the UK economy following Brexit back in June 2016. Halifax said it is 'most likely' that the economy will soften over 2017 and lower levels of house sales will occur as more people respond to weaker economic conditions and a deterioration in housing affordability by not buying or moving home.
However, the silver lining to this cloud is that it is predicted that a shortage of properties for sale and low interest rates ensuring mortgages remain cheap will help to keep supporting house prices in general.
There is also continued speculation that slow economic growth in 2017 due to weakening of the pound impacting on import costs could result in pressure on employment and therefore a higher risk of a rise in unemployment.
Martin Ellis, housing economist for Halifax said: 'This deterioration in the labour market, together with an expected squeeze on households' spending power - as inflation picks up and outpaces earnings growth later in the year - is likely to curb housing demand.'
Halifax's prediction runs parallel with several other forecasts, which point to UK house prices continuing to rise in 2017, but at a slower rate than that seen in 2016.
The Royal Institution of Chartered Surveyors said it believes property values to push up by around 3 per cent over 2017, while Nationwide Building Society predicts house price growth of around 2 per cent over next year.
If you wish to find out more about mortgage rates, take a look at the Mortgage Advice Services website at www.mortgageadviceservices.co.uk