HBOS, part of the Lloyds Banking Group reported a 2.3% drop in February in house prices, making the average house worth £160, 327.
As per reports by other lenders, there are signs that market activity is beginning to stabalise, but did note that 2009 would still be a difficult year.
The lender said there were "tentative" signs that housing market activity was beginning to stabilise, but added 2009 would still be a difficult year.
Compared to February 2008 the average cost of a home was 17.8% lower than February 2009.
The recent drop in house prices is more in line with the general downward trend, as opposed to the rise in January.
The reason that lenders are predicting early stabilisation of the market is that house price to earnings ration, which is a key measure of housing affordability has fallen to it’s lowest in six years. As previously reported by CPS Homes, due to other pressures on the economy it still means that 2009 will be a difficult year for most.
These figures have arrived a few days after CPS Homes reported that Nationwide reported that house prices fell 1.8% in February