House prices in the UK dropped by 0.3% in February, according to Halifax, with the average property price standing at £192,372 – 8.3% higher than this time in 2014.
This is the first time that house prices have fallen in the UK since October
In January UK house prices climbed 1.9%.
House prices in the UK fell in February. However, it should be noted that the drop was very small compared to the increase in January.
Commenting, Martin Ellis, housing economist, said:
“House prices in the three months to February were 2.6% higher than in the preceding three months. This measure of the underlying rate of house price growth increased for the second consecutive month in February despite a small monthly fall in prices. Annual price growth nonetheless eased, from 8.5% in January to 8.3%, and is comfortably below last July’s peak of 10.2%.
“The firming in price growth shown by the recent pick-up in the three month-on-three month comparison and indications of a modest rise in activity are likely to be due to a boost to housing demand as a result of increases in real earnings and spending power, further recent falls in mortgage rates and stamp duty changes.”
Demand for homes remains higher than the supply
“The supply of both new and secondhand homes available for sale remains low; another factor that is likely to be supporting house prices. Supply remains tight despite housebuilding in England increasing for the second consecutive year in 2014 and a recent rise in the number of properties coming on to the market.”
Earlier this week a survey by Nationwide also revealed that house prices dropped in February, by 0.1%, while the the annual rate of growth eased to 5.7%.
Howard Archer, chief UK and European economist at IHS Global Insight, said that the drop in February looked like a minor adjustment following the steep rise the month before.
“We suspect that housing market activity is now gradually turning around after losing appreciable momentum from the early-2014 peak levels, and we see activity picking up modestly as 2015 progresses.”