House prices in the three months to September were 5.8% higher than in the same three months of 2015, according to the latest Halifax House Price Index.
Prices in the last three months (July- September) were 0.1% lower than in the preceding quarter.
The average price of a home is now £214,024, Halifax said.
Martin Ellis, Halifax housing economist, said: “House prices in the three months to September were largely unchanged compared with the previous quarter. The annual rate of growth eased from 6.9% in August to 5.8%.
“The housing market has followed a steady downward trend over the past six months with clear evidence of both a softening in activity levels and an easing in house price inflation.
“The reduction in annual house price growth from a peak of 10.0% in March to 5.8% six months later remains in line with our forecast at the end of 2015. A lengthy period where house prices have risen more rapidly than earnings has put pressure on affordability, therefore constraining demand. Very low mortgage rates and a shortage of properties available for sale should, however, help support price levels over the coming months.”
