"The annual rate of growth has slowed from 2.2% in January to 1.8% in February, the lowest rate of growth since March 2013. "
Prices were 1.8% higher than in the same three months a year earlier, down from the 2.2% annual growth recorded in January and the lowest rate of growth since March 2013.
However on a monthly basis, prices grew marginally by 0.4% in February, following two consecutive monthly falls. The average price in February was £224,353, down slightly from November’s high of £226,408.
Russell Galley, managing director at Halifax, said: “House prices continue to remain broadly flat, as they have since the end of last year. The annual rate of growth has slowed from 2.2% in January to 1.8% in February, the lowest rate of growth since March 2013.
“The labour market continues to perform strongly with the number of people in employment rising by 88,000 in the three months to December. Notably, this is almost entirely accounted for by full-time jobs. The strength of the jobs market may finally be benefitting wage growth, with the annual growth rate accelerating from 2.3% in November to 2.8% in December. However, earnings are rising at a slower rate than consumer prices.
“Despite the November rise in the Bank of England Base Rate, mortgage rates continue to stay low by historical standards. While we expect price growth to remain low, the low mortgage rate environment, combined with an ongoing shortage of properties for sale, should continue to support house prices over the coming months.”
Founder and CEO of Emoov, Russell Quirk, commented: “Despite the marginal increase, prices have continued to stall heading into spring suggesting the usual seasonal market hangover has persisted for a while longer than usual.
"That said, we’ve seen a notable pick up in sellers listing their homes for sale across the UK and while still slightly subdued, there is certainly an appetite from the buyer’s side as well. As this increase in stock starts to filter through to actual sales, we will no doubt start to see a stronger, more sustained rate of upward growth.
"While Theresa May’s has set out yet more promises to fix our broken housing market earlier in the week, it seems any meaningful resolution is at best a long way off, at worst unlikely to materialise. As a result, prices will remain buoyant in the long term due to the strain on the nation’s property stock levels, coupled with persistent demand from home buyers as a result of the lower barrier to obtaining a mortgage.”
Jeremy Leaf, north London estate agent and former RICS residential chairman, added: "Although a little historic, these figures deserve attention, not least because of their geographical coverage and ability to identify market trends. On balance, Halifax doesn’t record much movement one way or another, a small monthly rise in prices and a small annual fall, which bears out what we are seeing on the ground. There are more listings and viewings but a reluctance to make an offer until clear direction of travel for the market can be established, with buyers and sellers still negotiating hard.
"We don’t expect this pattern to alter very much over the next few months unless there is a Brexit breakthrough."
