British house prices dipped 0.5 percent in February, largely offsetting January's 0.6 percent rise, data from mortgage lender Halifax showed on Tuesday.

House prices fell 1.9 percent in the three months to February compared with a year ago, taking the average price of a home to 160,118 pounds.

Lower inflation in the coming months should reduce some of the pressure on household incomes, helping to support housing demand, Halifax said.

Once a bedrock of consumer wealth, Britain's property market has faltered since the start of the financial crisis.

The prospects for house prices during 2012 will, to a large extent, depend on events in the euro zone and the potential knock-on effects on the UK, said Halifax housing economist Martin Ellis.

(Reporting by Olesya Dmitracova; Editing by Paul Hoskins)