UK house prices dip in February, demand slows

BRITAIN’S housing market slowed in February as demand faded from buyers who were rushing to purchase homes before the end of tax incentives on March 31, mortgage lender Halifax said on Friday (Mar 7).

House prices unexpectedly fell by 0.1 per cent last month after rising by a revised 0.6 per cent in January, and were below all forecasts in a Reuters poll of economists. Both monthly and annual data for January were revised slightly lower.

“February’s figures highlight the delicate balance within the UK housing market,” Amanda Bryden, head of mortgages at Halifax, said.

“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.”

Prices were 2.9 per cent higher in annual terms, the same rate as in January, and slightly below economists’ forecast of a 3.1 per cent rise. REUTERS