UK property prices grew by 0.4% last month according to the most recent house price index.
Whilst February saw an uplift month-on-month, annual growth actually saw a decline from 1.8% to 2.2%, with quarterly statistics dropping by 0.7%.
The data from Halifax showed the overall average house price to now stand at £224, 353, following the first quarter-on-quarter drop since May last year.
Commenting on the figures was Russell Galley. The Managing Director of Halifax stated: ‘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.
As well as highlighting the strength of the labour market, he acknowledged that ‘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.’
