Halifax: House prices on 'slight downward trend'

UK house prices fell by 0.9% in February compared with the previous month, cancelling out a rise in January, the Halifax has said.

The lender, now part of Lloyds Banking Group, said that year-on-year prices had dropped by 2.8% in February.

This meant the typical home in the UK now costs £162,657.

Martin Ellis, housing economist at the Halifax, predicted a "modest" 2% drop in prices in 2011, owing primarily to buyer and seller uncertainty.

"Fewer properties have been coming onto the market in recent months," he said.