Annually prices went up by 5.2% and over the quarter they climbed by 0.5% meaning the average house price was £251,697.
It comes just days after Nationwide reported a rebound in February and revealed house prices had reached record levels.
But Halifax did not appear concerned about a downturn. Indeed, Russell Galley, managing director at Halifax, said: “With annual house price inflation currently at +5.2%, property values remain comfortably higher than 12 months ago, when February was the last full month before lockdown.
“The housing market has been at something of a crossroads at the start of this year, with upcoming events key to determining the path of activity and prices over the next few months.
“The government’s decision to extend the stamp duty holiday – one of the main drivers of demand from home movers during the pandemic – has removed a great deal of uncertainty for buyers with transactions yet to complete.
“The new mortgage guarantee scheme is another welcome development from this week’s Budget.”
However, Galley did not think the market could sustain the level of growth seen over the last year going forward.
“In the longer-term, the performance of the housing market remains inextricably linked to the health of the wider economy,” he said.
“The pace and extent of recovery are still highly uncertain, and much will depend on the ongoing success of the UK’s vaccination roll out.
“Though there is the likelihood of an economic ‘bounceback’ from lockdown, with households not unduly impacted by the pandemic deploying the significant reserves of savings that they have built-up, higher unemployment is likely to limit new buyer demand.”
Stamp duty holiday effect
Others in the industry thought the dip in February was a blip and expected growth to return now the chancellor had formally announced the stamp duty holiday extension.
George Franks, co-founder of London-based estate agents, Radstock Property, said: “While February’s growth was negligible, March is likely to see a much more pronounced rise in house prices due to the extension of the Stamp Duty holiday and the new mortgage guarantee scheme.
“Since the budget we have already noticed an uptick in prospective buyers and this is likely to continue during the months ahead.
“Prices are also being supported by a phenomenal lack of stock. For now, in the capital at least, properties for sale are as rare as hens’ teeth.”
He added: “The Halifax is right that the economy and jobs market are key to the trajectory of prices this year, but we believe demand will remain relatively strong as it still costs less to own than to rent and mortgage rates are extraordinarily competitive.”
