Catherine Mann, a member of the Bank of England’s Monetary Policy Committee, has identified indications of a “revival” in the UK’s property market.

The observation from the member of BoE’s MPC, which sets the base interest rate, follows Halifax reporting a rise in house prices in February, as well as mortgage rates decreasing and lenders offering more competitive products.

Mann stated in an interview with Bloomberg TV: “We see a reduction in mortgage rates from the high point last autumn, we see more competition in terms of products coming from various lenders.

“That suggests to me that there’s more revival in process as opposed to a continued downward momentum.”

Despite the recent positive trend, most forecasters have predicted house prices to decline this year. However, Mann downplayed concerns over the potential impact of a market slump, noting that the falls are coming off the back of a significant 28% increase in prices since the start of the pandemic.

“There is some price depreciation, but it’s really not much compared to how much prices on average appreciated over the last couple of years,” she said. “We have to take into account what the starting point was.”

According to Halifax, house prices rose by 1.1% last month, the second increase this year, and by 2.1% from a year ago. Kim Kinnaird, director at Halifax Mortgages, stated that “recent reductions in mortgage rates, improving consumer confidence, and a continuing resilience in the labour market are arguably helping to stabilise prices following the falls seen in November and December”.

However, Kinnaird added: “Still, with the cost of a home down on a quarterly basis, the underlying activity continues to indicate a general downward trend.”