House prices edged down by -0.1% in February, according to Halifax’s latest annual house price index, although annual growth stayed at 2.9%, the same as January.
The average price of a property in the UK now stands at £298,602 the bank said, down very slightly from £298,815 in January.
Amanda Bryden,head of mortgages at Halifax, said: “February's figures highlight the delicatebalance within the UK housing market. While there’s been talk of a last-minuterush on new mortgages ahead of the changes to stamp duty, inevitably we’ve seen some of the demand that was brought forward start to fade as the April deadline ticks closer, given the time needed to complete a purchase.
“That may help to explain why growth in first-time buyer property prices eased in February, falling to +2.4%, in contrast to homemover price inflation which accelerated, reaching +3.7%”
An ongoing shortage of properties for sale, combined with strong buyer demand, should result in property prices continuing to increase over the year, the bank said, although at a slower pace than in previous years.
Scotland sees sharpest rise in prices
House prices in Scotland rose at their fastest pace in 13 months, the house price index showed, with annual growth there rising to 3.8% in February, up from 2.5% in January. Most other areas of the UK by contrast saw a slowdown in house price inflation in last month.
Northern Ireland continues to see the strongest annual property price growth out of all regions of the UK. The average price of a property in Northern Ireland is currently £205,784, with prices up 5.9% in February, largely unchanged from January.
Property prices in Wales increased by 2 8% compared to the previous year with the average home there now costing £226,811.
Annual property price growth in London eased to 1.6% in February, down from 2.6% in January, although the average price of a property in the capital remains considerably more expensive than any other region at £545,183.
