THE annual pace of house price growth is now at its slowest for a year, according to the UK's second biggest mortgage lender.

Nationwide said house price inflation fell to 7.2% in December on an annual basis, down from 8.5% in November.

However, activity in the housing market is likely to pick up in the months ahead, Nationwide said.

Monthly house prices rose by 0.2% in December, taking the average house price up to £188,559.