House prices Fall

House prices fell by 1.5 per cent n February, the first decline since June 2009, the Halifax House Price Index has shown.

The seven consecutive months of increase mean the average price still remains eight per cent higher than the low reached in April 2009.

This equates to an average increase of £12,367, taking the average house price to £166,857.

Halifax has suggested that a low supply of properties has been a key factor in pushing up prices, with improvements in the market only recently encouraging sellers to enter the market but mortgage finance remaining difficult to secure.

Recent winter weather and the expiry of the stamp duty holiday have also hit the market, the Halifax said.

Royal Institute of Chartered Surveyors chief economist Simon Rubinsohn agreed with this.

"Nevertheless, the underlying trend remains more positive than some of the recent headline numbers would suggest," he commented.

Monthly sales should rebound, the expert predicted, with prices resuming a modest upward trend.