According to property tracking website Rightmove, U.K. house prices declined 1.1% in December, after a 1.3% drop in November. The latest decline was the smallest fall since 2006.

The decline was mainly driven by falls in prices in the East of England, the South West, Wales, the East Midlands and the North East.

"Whilst a fall is the norm at this time of year, this is December's best post-financial-crash performance, signalling another round of price rises in 2016. Despite the shortage of suitable stock in many parts of the market, demand for housing is on the up," Rightmove director and housing market analyst, Miles Shipside, said.

On a yearly basis, house prices in the U.K. climbed 7.4% in December, after a 6.2% increase in November.