House prices fell by 1.5% in February according to the latest Halifax House Price Index. This was the first decline since June 2009 following seven consecutive monthly increases.
Prices in the three months to February were 1.8% higher than in the preceding quarter. This compared with a 3.2% increase on the same basis in January.
House prices in February were 4.5% higher on an annual basis. This was the largest increase in the annual rate of change – measured by the average for the latest three months against the same period a year earlier – since January 2008. The annual rate increased from 3.6% in January despite February’s monthly fall, partly because February’s decline was lower than the decline in February 2009.
Prices are 8.0% above the low reached in April 2009 an increase in the average price of £12,367 over this period. This follows a decline of 23% between August 2007 and April 2009. The average house price is now £166,857.
The Halifax says that low supply of properties for sale has been a key factor pushing up house prices. The recent improvement in market conditions has encouraged more homeowners to attempt to sell their property. The stock of properties available for sale increased for the second successive month in January. Additionally, the ratio of completed sales to stock eased, indicating a modest loosening in market conditions.
Martin Ellis, housing economist, said: “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