Most sellers 'will retain pandemic price gains,' says Halifax
House prices actually fell on a quarterly basis, according to the Halifax, but this came after falls in November and December.
Kim Kinnaird, director, Halifax Mortgages, said:
When comparing to January, there was a 1.1pc increase in house prices through the month of February, although overall prices are flat compared to three months ago.
Recent reductions in mortgage rates, improving consumer confidence, and a continuing resilience in the labour market are arguably helping to stabilise prices following the falls seen in November and December.
Still, with the cost of a home down on a quarterly basis, the underlying activity continues to indicate a general downward trend.
In cash terms, house prices are down around £8,500 (-2.9pc) on the August 2022 peak but remain almost £9,000 above the average prices seen at the start of 2022 and are still above pre-pandemic levels, meaning most sellers will retain price gains made during the pandemic.
With average house prices remaining high housing affordability will continue to feel challenging for many buyers.
Good morning
House prices have grown 2.1pc in February compared to the same month last year as lowering mortgage rates improve the outlook for the market.
House prices were up 1.1pc on January, according to the Halifax house price index, and stood at £285,476.
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What happened overnight
Asian shares were mostly higher in muted trading, as investors tried to digest a slew of economic data and awaited moves by the US Federal Reserve.
Japan's shares closed higher, with the benchmark Nikkei 225 index gaining 0.3pc to end at 28,309.16, while the broader Topix index climbed 0.4pc to 2,044.98.
Australia's S&P/ASX 200 gained 0.5pc to 7,366.90. South Korea's Kospi added 0.3pc to 2,471.02. Hong Kong's Hang Seng jumped 1.2pc to 20,850.18, while the Shanghai Composite edged up 0.2pc to 3,327.35.
The Reserve Bank of Australia decided to raise its key rate, cash rate target, 0.25 of a percentage point to 3.6pc. It said that although global inflation remains high, inflation in Australia is starting to subside. The hike was expected.
Wall Street stocks were mixed yesterday while bond yields stabilised, as investors await Fed Chair Jerome Powell’s congressional testimony later this week which will set expectations for the US central bank's upcoming policy meeting.
The Dow Jones Industrial Average closed 0.1pc higher at 33,431.44. The S&P 500 closed up 0.1pc at 4,048.42, while the tech-rich Nasdaq Composite dipped 0.1pc lower at 11,675.74.
The yield 10-year Treasuries, the benchmark for global borrowing costs, advanced three basis points to 3.98pc.