House prices were 9.7% higher this February than a year ago, despite a slight dip in the average UK house price between January and February.

This is according to the latest figures from Halifax, which recorded a slight 1.4% dip in the average house price last month, in direct contrast to the small rise in February prices noted by Nationwide today.

However Halifax pointed out that the fall offset much of January’s 1.7% rise, and that monthly house price changes can be volatile. The quarter on quarter change, which it said was 3%, is a more reliable indicator of the underlying trend, taking the average UK house price to £209,495.

Housing activity buoyant

UK home sales in the three months to January were 1.5% higher than in the previous three months and 9.3% higher than in the same period a year earlier.

Plus mortgage approvals rose 5% between December and January to 74,600, their highest level since January 2014.

Martin Ellis, Halifax housing economist, said: “Prices continue to rise at a robust pace driven by a significant imbalance between supply and demand. Whilst this position is likely to continue over the coming months, there are some tentative signs that the supply situation may be beginning to improve. Instructions for secondhand properties coming up for sale have increased in the past two months and the level of housebuilding increased significantly in 2015. Further ahead, increasing affordability issues, as house price increases continue to exceed wage growth, are likely to curb housing demand and cause price growth to ease.”