House prices fell by 0.5 per cent in February according to Britain’s major mortgage lender, Halifax.  This is in contrast with the data from other house price index reports that showed house prices were on the rise for February.  The housing market had received a boost from first time buyers that were looking to take advantage of the stamp duty holiday that ends in March.  Without the boost the decline of house prices may not have been so small.

The Halifax three month index through February revealed that prices were 1.1 per cent lower than in the previous three month period.  The annual index revealed prices were in a 1.9 per cent decline.

Martin Ellis, the Halifax housing economist, said “Overall, prices nationally are at broadly the same level as last spring. This stability in prices is explained by the fact that market conditions have changed very little over this period with demand supported by low interest rates and supply remaining tight.

Mr. Ellis added, “Falling inflation should relieve some of the pressure on household finances over the coming months. Many of the economic statistics released in recent weeks have also been encouraging, suggesting that the UK may avoid slipping back into recession.

“These developments are positive for the housing market outlook. Significant uncertainties, however, persist and the prospects for house prices during 2012 will, to a large extent, depend on events in the eurozone and the potential knock-on effects on the UK.”

Homeowners looking to remortgage would have welcomed an increase in the house price index which would have indicated a rebound of their equity levels.