House prices recovered in February month-on-month and are continuing to show year-on-year growth, according to the latest data from the Halifax.
The mortgage lender said prices rose 1.1% in February to an average of £285k, on the back of rising consumer confidence, and were 2.1% ahead of the value seen in the same month last year.
Kim Kinnaird, director, Halifax Mortgages, said: “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.
“With average house prices remaining high housing affordability will continue to feel challenging for many buyers.”
Jonathan Hopper, CEO of Garrington Property Finders, said the positive figures from the Halifax were a step in the right direction but the market remained “in a period of transition” with the outcome unclear. He said: “The Halifax’s data shows the average price of a home has now risen monthly for two months in a row, but it’s far too soon to call the end of the price correction that’s underway nearly everywhere.
“While many buyers have both the financial ability and the opportunity to buy, they lack the confidence to do so – and as a consequence the market is still slowing.”