House prices are being supported by a lack of new homes, with house prices growing on an annual, quarterly and monthly basis for the first time since October 2018.

The latest report from the Halifax shows in the three months to February house prices were 2.8% higher than in the same period a year earlier, up from the 0.8% annual growth rate recorded in January.

In the latest quarter (December-February) house prices were 1.8% higher than in the preceding three months, taking the average UK house to £236,800.

Shortage of houses

Demand for housing and the number of sales both fell again for the third month in a row according to the RICS UK Residential Market Survey.

Russell Galley, Managing Director, Halifax, said: “House prices have grown on an annual, quarterly and monthly basis for the first time since October 2018, taking the average house price to £236,800.

“The shortage of houses for sale will certainly be playing a role in supporting prices. House price growth is now at 1.8%, an increase from the 0.6% fall last month, and back at the rate we saw from July to September 2018.”

January saw 101,170 home sales, on par with the 5 year average of 101,291 and the fifth consecutive month where over 100,000 homes have been sold.