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UK house prices edged down marginally in September, according to the Halifax house price index on Friday.
House prices fell 0.1% in the month, compared to a 0.3% rise in August. The cost of a typical home was £293,835, edging down from August's record high of £293,992.
The decline was unexpected, with FXStreet-cited consensus predicting growth of 0.5%.
Annually, prices rose 9.9%, slowing from 11.4% annual growth seen in August. This was slightly ahead of consensus which had expected 9.8%.
‘The events of the last few weeks have led to greater economic uncertainty, however in reality house prices have been largely flat since June, up by around £250. This compares to a rise of more than £10,000 during the previous quarter, suggesting the housing market may have already entered a more sustained period of slower growth,’ said Kim Kinnaird, Halifax Mortgage director.
Kinnaird said many variables will dictate the trajectory of house prices. The effects of stamp duty cuts, a short supply of homes for sale and a strong labour market are likely to support house prices.
However, rising interest rates, higher mortgage borrowing costs and the cost-of-living crisis are likely to work as suppressing factors.
‘This will undoubtedly be a cause of some concern for homeowners, but the unprecedented rate of property price inflation we've seen in recent years has been far above the historic average. It's important to look at slower growth in this context since the start of the pandemic average property values have risen by around 23% - almost £55,000 - with detached house prices up by more than £100,000 over the same period,’ Kinnaird added.
Wales saw the strongest growth yet again, with London still recording the slowest annual growth rate. In England, the West Midlands took the top spot from the South West when it came to the strongest rate of annual growth.
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