Source: Sharecast
According to latest Halifax house price index, prices decreased by 0.3% in September, compared to a 0.2% uplift in August.
It was the first decline since May. Most analysts had been expecting another 0.2% rise.
Year-on-year, house prices rose by 1.3%, the slowest annual rate since April 2024 and down on August’s 2% rise. It was also below forecasts, for a 2.2% increase.
The average property price now stands at £298,184.
However, Amanda Bryden, head of mortgages at Halifax, said the market remained "broadly" stable.
"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," she said. "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."
The Bank of England has cut interest rates three times so far this year, to 4%. Inflation remains stubbornly above target, meaning analysts are divided as to when the next reduction will be, despite sluggish economic growth.
However, most agree that the current rate cutting cycle has not yet finished.
