This figure was down on the 3.9% recorded in November 2017, and 6.5% in December 2016.
However, house prices grew 1.3% in Q4 2017 compared to the previous quarter.

The average house price stood at £225,021 at the end of the year, 2.4% higher than in January 2017 (£219,741).

Russell Galley, managing director of Halifax Community Bank, said the bank expected annual price growth to continue in the range of 0-3% at the end 2018.

Jonathan Samuels, CEO of Octane Capital, added: "Few would argue with the Halifax's conclusion that UK price growth is likely to remain pedestrian at best during 2018.

"The market pausing for breath enables people to catch theirs.

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"High living costs – coupled with low or negative wage growth – are creating a lot of uncertainty and many households are minded to sit tight rather than transact.

"It's the lack of supply rather than the strength of demand that is keeping annual price growth in the black.”

Ishaan Malhi, CEO and founder of online mortgage broker Trussle, added: “The slowdown of price growth last year won’t have been welcomed by existing homeowners and buy-to-let landlords.

“But for those looking to get on the property ladder, it’s good news.

“With the continued pressure on household incomes, it's unlikely that we'll see significant growth in prices this year, so 2018 could be a good time to buy for those that already have some savings set