House prices fell by 1.4% in September
Average UK house prices fell by 1.4% in September, according to Halifax, taking the average price of a home to £225,995.
This second monthly dip in a row has pulled back annual house price growth to 2.5% from 3.7% in August, with the quarterly rate of change remaining steady at 1.8%.
Russell Galley, managing director of Halifax, said: “We are seeing a steadying in house price inflation across these more stable measures.
“This is set amongst mortgage approvals and completed house sales remaining broadly unchanged, although a gradual pickup in wage growth has helped to support household finances.
“The annual rate of growth is near the top of our forecast range of 0-3% for 2018, as a low supply of new homes and existing properties for sale, combined with historically low mortgage rates and a high employment rate, continue to support house prices.”
Lucy Pendleton, founder of James Pendleton estate agents, said it was concerning that prices had dipped so sharply from August. “September is a month that normally sees a burst of activity as people return from holiday and go back to work,” she explained. “So a fall of this scale is quite a retreat at a time when increased competition among those racing to move by Christmas would normally give the market a bit of buoyancy.
“The concern is that legions of Brits didn’t get back from holiday and head straight out again to the estate agent like they normally do. The back to work bounce is nowhere to be seen.”