House price growth rebounds to 2.8%: Halifax

House prices in the three months to February were 2.8% higher than in the same three months a year earlier – up from the 0.8% annual growth rate recorded in January.

House prices were also 1.8% higher than in the preceding three months, supported by monthly growth of 5.9%.

Russell Galley, managing director at Halifax, said: “House prices have grown on an annual, quarterly and monthly basis for the first time since October 2018, taking the average house price to £236,800.

"The shortage of houses for sale will certainly be playing a role in supporting prices. House price growth is now at 1.8%, an increase from the 0.6% fall last month, and back at the rate we saw from July to September 2018.

"Annual house price growth at 2.8%, is within our expectations, but is fairly subdued compared to 2015 and 2016, when the average growth rate was 8.3%.

"People are still facing challenges in raising a deposit which means we continue to expect subdued price growth for the time being. However, the number of sales in January was right on the five year average and, at over 100,000 for the fifth consecutive month, the overall resilience of the market is still evident.”

Property expert and Yomdel CEO, Andy Soloman, commented: “Much like the wider political spectrum, a drastic monthly increase of almost 6% will no doubt confuse many who have otherwise been told we’re in the midst of a complete market slowdown. Monthly price growth measurements can be somewhat unreliable however, on both an annual and quarterly basis the market looks to be finding good form early in the year.

"On the face of it, we remain in a fairly strong position with the property market holding firm due to a growing level of buyer sentiment and the consistent affordability of borrowing money. Both are helping to bolster a market that has otherwise been running on the fumes of political uncertainty for quite some time.”

Tomer Aboody, director of MT Finance, added: "With all the uncertainty around Brexit it is pleasantly surprising to see the resilience of UK house prices and a slight increase in price growth is very encouraging. While properties might sit on the market a bit longer, those that have steered clear of inflated valuations are selling, and there is a substantial appetite for properties which are priced correctly.

"There is far more demand than supply in the UK housing market which should curtail any dramatic fall in pricing and act as an antidote to any potential fallout caused by the Brexit saga, keeping the property market active.

"Going forward, we don’t foresee a vast increase in property prices, unless stamp duty is reduced and demand therefore increases."