House prices fell by 0.4 per cent across the country in October, according to the latest data from Halifax.
The bank’s seasonally adjusted house price index also show a quarterly increase of just 0.8 per cent in the three months to October – the third decline in a row in the quarterly rate of increase.
Annually price growth in the three months to October slowed to 8.8 per cent, down from 9.6 per cent in September. The average price now sitting at £186,135.
Home sales contracted for the seventh month in succession in September, while mortgage approvals are at a 14-month low. The Royal Institution of Chartered Surveyors’ monthly survey shows market conditions – measured by the ratio of house sales to the stock of unsold properties – eased in September for the second consecutive month, suggesting supply and demand are beginning to even out.
Housing economist Martin Ellis comments:
“Activity continues to decline with mortgage approvals in September falling for the third successive month to a 14 month low, whilst home sales are at their lowest level since October 2013. The associated weakening in demand has brought supply and demand into better balance.
“The economy is, however, continuing to grow at a healthy pace and employment is still rising. These factors should support housing demand over the coming months.
“However, while the chances of an imminent interest rate hike may have receded, a recent Halifax survey found that many borrowers are concerned about the impact a rise could have on their monthly mortgage repayments over the next 12 months. This concern is likely to curb buying intentions.”
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