Halifax: monthly house prices drop 1.4%

However prices on a quarterly basis (December-February) rose by 3% - the highest since June 2015.

Prices in the three months to February were 9.7% higher than in the same three months a year earlier, the same as January’s 9.7% rise. The annual rate remains within the 8%-10% range where it has been for nearly the entire period since the start of 2015.

Martin Ellis, Halifax housing economist, said:

"House prices in the three months to February were 3.0% higher than in the previous three months whilst the annual rate remained unchanged at 9.7%.

“Prices continue to rise at a robust pace driven by a significant imbalance between supply and demand. Whilst this position is likely to continue over the coming months, there are some tentative signs that the supply situation may be beginning to improve. Instructions for secondhand properties coming up for sale have increased in the past two months and the level of housebuilding increased significantly in 2015. Further ahead, increasing affordability issues, as house price increases continue to exceed wage growth, are likely to curb housing demand and cause price growth to ease.”

Founder and CEO of eMoov.co.uk, Russell Quirk, commented:

“There are slight signs that the UK market is cooling, with the February wobble seeing a decrease of 1.4% since January. However, this is only marginal as since November prices are up by another 3% and nearly 10% in the last year. Demand is always an influential factor where an increase in house prices is concerned, so the impending stamp duty changes due in April have no doubt helped to keep the UK market buoyant.

"There has been a flurry of buyers keen to secure that second home or buy to let investment before the April deadline, as well as an increase in the stock available, due to savvy buyers looking to cash in and obtain a higher price than usual during this period of high demand.

"We expect once the stamp duty dust has settled the market will cool slightly, but whilst UK and foreign buyers are still fuelling this increase, the issue of affordability will continue to take a back seat, rather than helping to restrain a continually inflating market.”