House prices fell 1.5 per cent in February, says Halifax

4 March 2010 11:47 am | By Paul Thomas

The figures show, however, that house prices in the three months to February were 1.8 per cent higher than in the preceding quarter.

On an annual basis, house prices were 4.5 per cent higher than the preceding year, the largest increase in annual rate of change since January 2008.

Prices are 8 per cent above the low reached in April 2009, an increase in the average price of £12,367 over the period, following a decline of 23 per cent between August 2007 and April 2009. The average house price is now £166,857.

Halifax housing economist Martin Ellis says: “House prices fell by 1.5 per cent in February, the first decline since June 2009 following seven consecutive monthly increases. Despite this fall, the average price is 8 per cent above the trough reached in April 2009.

“There has been a decline in the underlying rate of house price inflation - measured by a comparison of the latest three months with the previous quarter - over the last few months. An increase in the number of properties available for sale has helped to reduce slightly the imbalance between supply and demand.

“At the same time, the bad weather in the first two months of 2010, together with the return of the lowest stamp duty threshold to £125,000, are likely to have had an adverse impact on housing demand. The combination of these factors appears to have helped to curb the upward pressure on house prices.”

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