Halifax Reports Unexpected Rebound in UK House Prices for February

According to Halifax, British house prices unexpectedly rose by 1.1% month-on-month in February, which could indicate improvements in consumer confidence and the mortgage market.

This contrasts with the recent trend of declining house prices since the onset of the COVID-19 pandemic.

However, other housing market indicators have not shown a similar improvement, and another lender, Nationwide, reported the biggest drop in house prices in over ten years during February.

Mortgage approvals and other housing market activity indicators have also hit multi-year lows in recent months.

While recent reductions in mortgage rates, improving consumer confidence, and a resilient labour market may be helping to stabilise prices, Halifax remains cautious about the outlook, citing a general downward trend in underlying activity. However, according to Halifax, house prices were 2.1% higher than a year ago.