Average UK house prices fell 0.3% in September, with the £794 decrease erasing gains in August and bringing the cost of a typical home to £298,184.
Annually, prices grew 1.3% in September – the lowest annual rate since April 2024, according to the latest Halifax House Price Index.
“This slight monthly dip in house prices reflects a housing market that has remained broadly stable, prices are up 0.3% since the start of the year,” said Amanda Bryden, head of mortgages at Halifax.
“While affordability remains a challenge, a relatively lower mortgage rate environment and steady wage growth have helped support buyer confidence.
“Although the broader economic outlook remains uncertain, with the affordability picture gradually improving, we continue to expect modest growth through the remainder of the year.”
Northern Ireland once again lead the fastest annual property price inflation, with average property values up 6.5% over the past year (down from 7.9% last month), the data showed. The typical home now costs £216,496, though prices remain well below the UK average.
Meanwhile, Scotland recorded annual price growth 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 annual growth with prices up 4.8% to £180,443, followed by the North West (3.9%).
The South West saw a second consecutive price fall by 0.2% over the past year (previously 0.7%) with prices now £303,067.
Prices are up only very slightly on the year in London (0.6%) and the South East (0.2%), with the capital remaining the most expensive part of the UK, with an average property value of £543,497.
“An [average] fall in house prices reflects the 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 raise concerns among homeowners and sellers, they also present opportunities, particularly for first-time buyers who have struggled with stretched affordability in recent years.”
The latest report confirms a narrative set by the Nationwide House Price Index release last week. The data then showed house price growth steadying even as concerns about borrowing costs and affordability continue to percolate.
In August, the Bank of England cut its key interest rate, guiding borrowing costs, to 4%, its lowest level in more than two years. The vote was narrowly backed by the Bank’s policymakers who took two votes to reach a decision.
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