Property prices fell by 0.3% in February Halifax has revealed in its latest house price index.
But it says that despite the fall prices are still 0.2% higher than in Q3 2007.
The average price of a UK home in February was £196,649.
Martin Ellis, chief economist at Halifax, says: “While the housing market has slowed over the past six months, it is supported by sound economic fundamentals.”
“Interest rate cuts by the Bank of England are also helping to underpin house prices. Nationally, we predict that house prices will be flat in 2008.”