Halifax: house prices falling
The bank's February House Prices Index shows prices are falling, despite the proportion of first-time buyers increasing.
House prices are falling, according to February’s Halifax House Price Index. Prices in February were down 0.5% on January and 1.9% on a year ago.
February is the fifth consecutive month where quarterly prices have dipped, although the fall is slightly smaller than January’s 0.9% decline. Annually, prices have also been down between -1% and -2% for the past five months.
The average UK house price is now £160,118; that’s around the same level it was at last April when the average price was £160,393.
The proportion of first-time buyers who are purchasing increased for the second successive month ahead of the Stamp Duty holiday coming to an end on the 24th March.
Halifax says a lack of supply and low interest rates means prices are continuing to stagnate. But it says that falling inflation and better economic data in recent weeks might point to a revival ahead.
However, it warns again that any significantly negative developments in the Eurozone that have a knock-on effect on the UK would affect prices.
Last week, Nationwide reported that prices had risen by 0.9% annually, although it attributed much of this to a 'bounce' due to first-time buyers trying to beat the Stamp Duty deadline.
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