UK house prices saw their biggest fall in five months in September, while price increases compared to the same period in 2017 slowed to a three-month low.
Figures from Halifax today showed the standard average house price in the UK fell to £225,995 in September, down from £229,284 the month before. This was also only a slight rise year-on-year, compared to £225,369 in September 2017.
Meanwhile mortgage approvals for August showed a small rise, as Bank of England figures revealed completed sales based on mortgage financing rose from 65,156 in July to 66,440 in August.
“The annual rate of growth is near the top of our forecast range of 0 to 3 per cent 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,” said Halifax managing director Russell Galley.
The annual growth rate of house prices eased to 2.5 per cent in September, slowing from 3.7 per cent in August. By quarter, growth remained at 1.8 per cent for the second month as house price inflation began to steady.
“This bulletin is as clear as mud but it’s the sharp monthly drop on August’s prices that sticks out because of its timing,” said Lucy Pendleton, founder and director of independent estate agents James Pendleton.
“September is a month that normally sees a burst of activity as people return from holiday and go back to work. 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. ”
Source: City A.M.