UK Halifax House Prices Fall Unexpectedly

(RTTNews) - UK house prices fell unexpectedly in February as demand started to soften with the stamp duty holiday to end on March 31, mortgage lender Halifax said Friday.

House prices registered a monthly fall of 0.1 percent in February, reversing January's 0.6 percent increase. Prices were forecast to grow 0.5 percent.

Year-on-year, house prices advanced 2.9 percent, the same pace of growth as seen in January. Economists had forecast an annual growth of 3.1 percent.

"While there's been talk of a last minute rush on new mortgages ahead of the changes to stamp duty, inevitably we've seen some of the demand that was brought forward start to fade as the April deadline ticks closer, given the time needed to complete a purchase," Halifax Head of Mortgages Amanda Bryden said. Although house price growth has slowed overall, market activity remains strong and comparable to pre-pandemic levels, reflecting a resilience amongst buyers that is been evident in the face of higher borrowing costs, Bryden added.

Bryden said property prices are set to continue to rise this year, albeit at a more measured pace driven by the shortage of housing supply and sustained demand.

Capital Economics' economist Ashley Webb said any potential boost to house prices in February from some buyers bringing forward property purchases ahead of the looming end of the stamp duty threshold relief on March 31 may have been offset by the weak economy and high mortgage rates.