The drop of 0.3 per cent last month added to pull the annual rate of house price inflation back to 4.2 per cent.
The knock on effect of this on the average UK home showed that whilst the annual price growth was still in the positives, only £4,390 had been added to its value over the last twelve months.
Martin Ellis, Halifax chief economist, said that 'sound economic fundamentals' would continue to underpin the housing market despite this slight price correction.
Furthermore, the report highlighted that the number of people in employment – a very important driver of housing demand - had risen by 296,000 over the past year to a record 29.40 million.
With the Bank of England's Monetary Policy Committee (MPC) announcing their decision on interest rates later today, Halifax predicted that the Bank would vote for at least two further cuts in 2008, although there was no hint of how swiftly the lender thought these would come about.
