This rise more than offset Januarys fall in house prices. This mixed pattern of monthly prices rises and falls is a typical feature of a slower housing market, says Halifax.
Annual house price inflation stands at 5.5 per cent and has remained broadly unchanged since November 2005.
Halifax predicts that UK house prices will rise by 3 per cent, in line with the rise in retail price inflation.
Martin Ellis, chief economist at Halifax, said: The combination of improving economic growth, low interest rates and high employment will continue to underpin a healthy level of housing demand over the next few months.
He believes, however, that a number of factors should constrain housing demand and prevent a significant and sustained acceleration in house price inflation 2006.
Ellis says that the situation for first-time buyers will remain tough. The continuing high level of house prices in relation to earnings will curb the ability of many potential first-time buyers to enter the market.
Householders will also face increased financial pressure from increased council tax and utility bills.
The weakening in the labour market should also temper housing demand, says Ellis.
