UK house prices fall 1.5 pct m/m in Feb -Halifax

House prices in Britain unexpectedly fell 1.5 percent in February, the first drop since June last year, mortgage lender Halifax said on Thursday.

The decline followed a downwardly revised 0.4 percent rise in January and left prices 4.5 percent higher in the three months to February compared with a year ago.

Halifax said increased supply, poor weather and the end of a tax holiday for some homebuyers had all contributed to the fall, though it noted property prices were still 8 percent higher than in April last year.

"An increase in the number of properties available for sale has helped to reduce slightly the imbalance between supply and demand," said Halifax's housing economist Martin Ellis.

"At the same time, the bad weather in the first two months of 2010, together with the return of the lowest stamp duty threshold to 125,000 pounds, are likely to have had an adverse impact on housing demand."

Halifax said the average price of a home stood at 166,587 pounds ($250,700) in February.

Thursday's survey was the latest in a string of figures to point to a cooling in the housing market.

The Nationwide building society reported a 1.0 percent fall in house prices last month and Bank of England figures showed mortgage approvals fell to an 8-month low in January.

"In general housing indicators have been cooling off of late," said Alan Clarke, UK economist at BNP Paribas. "If members of the Monetary Policy Committee are concerned about asset prices, the latest readings suggest they needn't lose too much sleep about house prices."

Britain's central bank will conclude its monthly policy meeting at midday and is widely expected to leave interest rates at 0.5 percent and its quantitative easing programme on hold.