Britain's house prices declined by 0.5 percent in February from the previous month against a 0.6 percent rise in January, according to Halifax, one of the country's biggest the mortgage lenders.

Houses prices fell by 1.1 percent in the December to February period from the previous three months, and were down 1.9 percent year on year, according to a Halifax House price index report released on Tuesday.

The average home price stood at 160,118 pounds (about 252,000 U.S. dollars) in February, similar to that in April 2011.

"Overall, prices nationally are at broadly the same level as last spring, this stability in prices is explained by the fact that market conditions have changed very little over this period with demand supported by low interest rates and supply remaining tight," said Martin Ellis, Halifax housing economist.

Falling inflation should relieve some of the pressure on household finances over the coming months. Economic data released in recent weeks have also been encouraging, suggesting that Britain may be able to avoid slipping back into recession.

Official figures showed that Britain's Consumer Price Index (CPI), a major gauge for inflation, fell to a 14-month low of 3.6 percent in January from 4.2 percent in the previous month.

"These developments are positive for the housing market outlook," Ellis said.

Significant uncertainties, however, persisted and the prospects for house prices during 2012 will, to a large extent, depended on events in the Eurozone and the potential knock-on effects on Britain," Ellis said.