Average UK house prices fell 0.3% in September, with a further £794 decline in August taking the price of a typical home to £298,184.
Annually, prices rose 1.3 per cent in September – the lowest annual rate since April 2024, according to the latest Halifax home price index.
“This small monthly fall in house prices reflects a housing market that has remained broadly stable, with prices up 0.3% year-to-date,” said Amanda Bryden, head of mortgages in Halifax.
“While affordability remains a challenge, the relatively lower mortgage rate environment and robust wage growth have helped support buyer confidence.
“While the broader economic outlook remains uncertain as the affordability picture gradually improves, we continue to expect modest growth for the rest of the year.”
Data showed Northern Ireland once again had the fastest annual house price inflation, with average property prices increasing by 6.5% (up from 7.9% last month). A typical home now costs £216,496, although prices remain well below the UK average.
Meanwhile, Scotland recorded an annual price rise of 4.5% in September to an average of £215,588. In Wales, property values rose 1.9% year on year to £227,845.
In England, the North East recorded the strongest year-on-year growth, with prices rising 4.8% to £180,443, followed by the North West (3.9%).
In the South West, prices fell for the second time in a row, falling 0.2% over the past year (previously 0.7%), with prices now £303,067.
Prices rose only slightly year on year in London (0.6%) and the south east (0.2%)IN Capital remains the most expensive part of the UK, with an average property price of £543,497.
“An [average] The fall in house prices reflects ongoing pressure on the housing market from higher borrowing costs, economic uncertainty and affordability constraints,” said Nathan Emerson, CEO of Propertymark.
“While price declines may cause concern among homeowners and sellers, they also present opportunities, especially for first-time buyers who have struggled with increased affordability in recent years.”
The latest report confirms the narrative set by the nationwide release of the House Price Index last weekField The data then showed house prices rising even as concerns about borrowing costs and affordability continued to grip.
In August, the Bank of England cut its key interest rate, targeting borrowing costs, to 4%, the lowest level in more than two years. The vote was narrowly supported by bank politicians, who received two votes to make the decision.
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