House prices grew at their slowest pace since April 2013 last month, in keeping with the predominantly flat trend seen over recent months.
On a monthly basis, house prices were actually down by 0.4% in September, while prices were up 0.4% quarter-on-quarter, according to the results of the most recent house price survey from Halifax.
Versus a year ago, the mortgage lender’s House Price Index was ahead by just 1.1% to reach £232,574.
The report also included some revisions to previous months’ figures following an update to the index’s methodology, with Halifax revising August’s monthly rise down to 0.2% from 0.3%.
Halifax’s managing director Russell Galley said: “Underlying market indicators, including completed sales and mortgages approvals, continue to be broadly stable.
“Meanwhile for buyers, important affordability measures – such as wage growth and interest rates – still look favourable.”
Galley added that looking forward, Halifax expects activity levels and price growth to remain subdued while the current period of economic uncertainty persists.
However, the monthly Halifax house price index was just one of many that track the UK market and has periodically been higher than others.
Nationwide building society said annual house price inflation slowed to 0.2% last month, while the Office for National Statistics, which uses data from the Land Registry, estimated it at 0.7% in July.
London estate agency Benham & Reeves’ director Marc von Grundherr said: “These most recent of statistics from one of the country’s volume mortgage lenders are the latest in a very mixed picture and one that adds to confusion as to what on earth the property market is really doing.
“The various indexes of late have not only contradicted each other but often contradict themselves month-on-month – in fact, the numbers have bounced around like a beach-ball on a bungee rope since the beginning of the year.”
Von Grundherr also said the fact that the year-on-year numbers were still positive “defies the gravity” of the current political situation.
Shares in housebuilders like Persimmon and Taylor Wimpey were down in early trade.
By Iain Gilbert
Source: Sharecast News