The slump is thought to be a reflection of the job losses in the town, and prices only fell by more in Ardrossan which is also in Scotland.
This is not a reflection of the rest of the UK however, as house prices rose by an average of 1.5 per cent in February according to the lender.
Gary Styles, head of group economics at Halifax, said: "The housing market has started 2002 strongly with little sign of the widely anticipated slowing. House prices have risen by over 8 per cent in the last four months and by 16.9 per cent in the last year. Although this largely reflects a bounce back in consumer confidence from the lows of the September terrorist attacks, supply shortages in the market are also contributing to higher house prices.
These figures fit very well with the recent data published on consumer confidence, consumer credit and mortgage growth. The UK consumer is continuing to borrow and spend against a background of a weak US and world economy. However, we continue to expect slowing UK economic growth and rising unemployment will result in an easing in house price inflation over the course of 2002."
