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| Version 2 | Version 3 |
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| UK house prices 'dropped by 1.5%' | UK house prices 'dropped by 1.5%' |
| (about 3 hours later) | |
| UK house prices recorded their first monthly fall since June with a 1.5% drop in February, the Halifax has said. | UK house prices recorded their first monthly fall since June with a 1.5% drop in February, the Halifax has said. |
| The drop was caused by the end of stamp duty relief, the cold weather and more properties being put up for sale. The average home is now worth £166,857. | |
| The Halifax said that prices were still 4.5% higher than a year earlier, but the market had slowed in recent months. | The Halifax said that prices were still 4.5% higher than a year earlier, but the market had slowed in recent months. |
| The survey found that prices are also a full 8% higher than the lowest point of the market in April 2009. | The survey found that prices are also a full 8% higher than the lowest point of the market in April 2009. |
| Lending slows | Lending slows |
| The icy weather has been widely noted as a major factor in the latest round of data about the UK housing market. | |
| Weather conditions slowed activity, with many potential homebuyers less tempted to look around homes or finding it difficult to travel. | Weather conditions slowed activity, with many potential homebuyers less tempted to look around homes or finding it difficult to travel. |
| The end of the temporary stamp duty relief was also regarded as a factor in the slowdown. | The end of the temporary stamp duty relief was also regarded as a factor in the slowdown. |
| The stamp duty threshold dropped back to £125,000 on 1 January, after the threshold was at £175,000 for just over a year. | The stamp duty threshold dropped back to £125,000 on 1 January, after the threshold was at £175,000 for just over a year. |
| Both these issues were cited last week by the Nationwide building society , which said that prices had fallen by 1% in February. | |
| Mortgage lending also suffered at the start of the year. Recent figures from the Council of Mortgage Lenders also showed that gross lending for home loans fell by 32% in January compared with December, reaching a 10-year low of £9.1bn. | Mortgage lending also suffered at the start of the year. Recent figures from the Council of Mortgage Lenders also showed that gross lending for home loans fell by 32% in January compared with December, reaching a 10-year low of £9.1bn. |
| The Bank of England also reported a 17% fall in the number of mortgages approved for house purchase during January. | The Bank of England also reported a 17% fall in the number of mortgages approved for house purchase during January. |
| But the Halifax, which is now part of the Lloyds Banking Group, also pointed to a rise in the number of people putting their home on the market as a factor affecting prices. | But the Halifax, which is now part of the Lloyds Banking Group, also pointed to a rise in the number of people putting their home on the market as a factor affecting prices. |
| "An increase in the number of properties available for sale has helped to reduce slightly the imbalance between supply and demand," said Martin Ellis, Halifax housing economist. | "An increase in the number of properties available for sale has helped to reduce slightly the imbalance between supply and demand," said Martin Ellis, Halifax housing economist. |
| Economy worries | Economy worries |
| The low supply of quality properties on the market was regarded as a key issue when prices were rising throughout the second half of 2009. | The low supply of quality properties on the market was regarded as a key issue when prices were rising throughout the second half of 2009. |
| Figures from the Land Registry for properties in England and Wales - which lag behind other data but are considered the most comprehensive - showed that prices had risen for eight months in a row until the start of February. | Figures from the Land Registry for properties in England and Wales - which lag behind other data but are considered the most comprehensive - showed that prices had risen for eight months in a row until the start of February. |
| There is huge uncertainty over mortgage finance, interest rate hikes and over people's job certainty James Moss, Curzon Investment Property | There is huge uncertainty over mortgage finance, interest rate hikes and over people's job certainty James Moss, Curzon Investment Property |
| However, the three-month on three-month figures from the Halifax show that the underlying rate of house price inflation had slowed in February. | However, the three-month on three-month figures from the Halifax show that the underlying rate of house price inflation had slowed in February. |
| Prices were 1.8% higher quarter-on-quarter, compared with a 3.2% increase in January, it said. | Prices were 1.8% higher quarter-on-quarter, compared with a 3.2% increase in January, it said. |
| The state of the economy also remains a key factor in people's decisions about whether to move home, according to James Moss, director of Curzon Investment Property. | The state of the economy also remains a key factor in people's decisions about whether to move home, according to James Moss, director of Curzon Investment Property. |
| "There is huge uncertainty over mortgage finance, interest rate hikes and over people's job certainty. None of this is helped by the possibility of a hung parliament," he said. | "There is huge uncertainty over mortgage finance, interest rate hikes and over people's job certainty. None of this is helped by the possibility of a hung parliament," he said. |
| Simon Rubinsohn, chief economist for the Royal Institution of Chartered Surveyors (Rics), said: "The likelihood is that prices will resume an upward trend, albeit at a more modest pace than seen during the latter part of 2009. | |
| "However, the backdrop for the housing market is set to become gradually more challenging as public spending is cut, taxes go up and the cost of mortgage finance begins to rise." |