Halifax reports 1.5% fall in house prices in February

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by Kay Murchie

The Halifax has today revealed a 1.5% fall in house prices for the month of February compared with January.

However, on an annual basis, house prices are still 4.5% higher than a year ago, while the average UK home costing £166,587.

According to the Halifax, which is now owned by the Lloyds Banking Group, it was the first monthly fall since June.

In comparison, the Nationwide Building Society last week said house prices fell by 1% in February.

However, according to the Nationwide, February’s fall takes the annual increase to 9.2% with the average UK home costing £161,320.

Over the last six months or so, house prices rose as a result of higher demand and a shortage of properties up for sale.

Commenting on today’s figures, Martin Ellis, Halifax housing economist, said: “An increase in the number of properties available for sale has helped to reduce slightly the imbalance between supply and demand.”

However, last month’s house price fall was attributed to the end of the stamp duty holiday and the snowfall, which slowed activity.

Howard Archer, of IHS Global Insight, comments: “The fall in house prices in February reported both by the Halifax and the Nationwide is supportive to our long-held view that house prices will be prone to corrections in 2010 and will probably be no better than flat over the year.