House prices fall in February

Category: Mortgages
Date: 3/4/2010

House prices in the UK registered a fall in February, the first monthly downward movement since June last year.

The average property fell by 1.5 per cent in value last month, following seven consecutive months of price rises. However the long term trend is still positive, the Halifax house price index shows.

Since the housing sector reached a trough in April 2009, prices have risen by eight per cent, with some £12,367 added to the average house price over this time.

This rise follows a decline between August 2007 and April 2009 that saw house prices fall by almost a quarter (23 per cent).

Prices in the three months to February were 1.8 per cent higher than the preceding quarter. On an annual basis, the average value of a home improved by 4.5 per cent.

A homebuyer purchasing a home in the UK at the end of February could have expected to pay an average price of £166,587.

A small increase in the amount of stock available – which has been driven by improving market conditions – was a factor in the house price falls.

"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," commented Martin Ellis, housing economist.

"The combination of these factors appears to have helped to curb the upward pressure on house prices."

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