UK house prices rose by 1.1% in February to £285,476, from £282,360 in January, said Halifax.

The lender added that the annual rate of house price growth remained at 2.1% for the third month in a row.

Despite this, house prices are down around £8,500 (-2.9%) compared to the August 2022 peak. However, they remain almost £9,000 above the average prices seen at the start of 2022.

Kim Kinnaird, director of 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.

“Still, with the cost of a home down on a quarterly basis, the underlying activity continues to indicate a general downward trend.”

Jonathan Hopper, CEO of Garrington Property Finders, added: “For both rattled sellers and anxious buyers, this is a tentative step in the right direction.

“Prices are now settling rather than sliding, and the market remains firmly in a period of transition. The trouble is no-one yet knows what it’s transitioning to.”

Regions and nations

Annual growth reduced most significantly in the North East, at 1.1% in February compared to a rise of 3.6% in January, with homes now costing an average £163,953.

Average house prices in London are now £526,842, down by -0.9% over the last year.

Annual growth fell by the least in Scotland. House prices in the nation are now an average £198,779 (a growth rate of 2.2%, compared to 2.3% in January.

In Wales, annual growth in February was 1.2% (vs 1.9% in January), with homes costing £210,917, on average.

Those purchasing a home in Northern Ireland will now pay £185,009, on average, an annual growth rate of 5.7% (vs 7.0% in January).