This compares to a rise of 0.6% in January.
It takes the average property price now £298,602, £213 lower than the £298,815 a month earlier.
Annual house price growth remains at 2.9%, unchanged from January, said the UK’s largest lender.
Amanda Bryden, head of mortgages at Halifax, said: “February’s figures highlight the delicate balance within the UK housing market.
“While there’s been talk of a last minute rush on new mortgages ahead of the changes to stamp duty, inevitably we’ve seen some of the demand that was brought forward start to fade as the April deadline ticks closer, given the time needed to complete a purchase.
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“That may help to explain why growth in first-time buyer property prices eased in February, falling to +2.4%, in contrast to homemover price inflation which accelerated, reaching +3.7%.
“While house price growth has slowed overall, market activity remains strong and comparable to pre-pandemic levels, demonstrating a resilience amongst buyers that’s been evident in the face of higher borrowing costs.”
Holly Tomlinson, financial planner at Quilter, added: “The housing market has been banking on rate cuts this year, but if inflation stays sticky borrowing costs could stay higher for longer, slowing house price growth or even pushing prices down in real terms.
“The next few months will be crucial in setting the direction of the housing market. If inflation can be controlled and the Bank of England presses ahead with rate cuts, the housing market could see renewed momentum. However, persistent inflation, higher mortgage rates, and global trade tensions could dampen demand and keep price growth subdued.
“For now, buyers and sellers should remain realistic. Mortgage rates remain well above their historic lows, and while affordability is slowly improving, any recovery in house prices will be slow and uneven. Those considering moving should keep an eye on both interest rate expectations and global events, as they will play a bigger role than ever in shaping the cost of borrowing in the UK.”
Regional split
Most areas of the UK saw a slowdown in house price inflation in February, said Halifax.
Bucking the trend most notably was Scotland, which saw annual growth increase to +3.8% compared to +2.5% in January, with an average house price of £213,014.
Northern Ireland has the strongest annual property annual price growth in the UK, at +5.9% in February. Properties in Northern Ireland now cost an average of £205,784.
House prices in Wales were up +2.8% compared to the previous year, with properties valued at an average of £226,811.
In England, Yorkshire and Humberside recorded the strongest annual property price growth for the first time since July 2021, up +4.1% compared to the previous year, with properties now costing an average £216,130.
London saw annual house price growth fall from +2.6% in January to +1.6% in February. The capital still has the most expensive average property price in the UK, at £545,183.
