Average housing market rose in February by 1.4%, after a fall in the previous month, which could indicate a slowing housing market, according to the Halifax.

The Halifax expects average house prices to rise moderately over the next few months, followed by a dip in the market towards the latter half of 2006, therefore predicting that average house prices will end this year up 3%

Martin Ellis, chief economist, says: “House prices increase by 1.4% in February, more than offsetting January’s fall. This mixed pattern of monthly price rises and falls is a typical feature of a slower housing market.”

He adds: “A number of factors should constrain housing demand, as council tax and utility bill increases of well above inflation will put downward pressure on householders’ finances. And additionally the weakening labour market should temper housing demand.”