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.
Use lovemoney.com's innovative new mortgage tool now to find the best mortgage for you online
At lovemoney.com, you can research all the best deals yourself using our online mortgage service, or speak directly to a whole-of-market, fee-free lovemoney.com broker. Call 0800 804 8045 or email mortgages@lovemoney.com for more help.