Halifax has reported that house prices fell by 1.4% in September, the second consecutive fall.
However, house prices in the latest quarter (July-September) were 1.8% higher than in the preceding three months (April-June), the third consecutive rise on this measure.
House prices in the three months to September were 2.5% higher than in the same three months a year earlier.
Meanwhile, the annual growth rate slowed from the 3.7% recorded in August.
Russell Galley, managing director, Halifax, said: “With the annual rate of house price growth easing to 2.5% in September from 3.7% in August and the quarterly rate of growth remaining at 1.8% for the second month, we are seeing a steadying in house price inflation across these more stable measures.
“This is set amongst mortgage approvals and completed house sales remaining broadly unchanged, although a gradual pickup in wage growth has helped to support household finances.
“The annual rate of growth is near the top of our forecast range of 0-3% 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.”
Kevin Roberts, director of Legal & General Mortgage Club, added: “Limited housing supply is still strangling the ambitions of borrowers up and down the country. Whether it’s first-time buyers, second steppers or people looking to downsize, a lack of suitable housing is still preventing many from making their first or next purchase.
“There is good news – steadier house price growth, schemes like Help to Buy and a wider choice of mortgages are making it easier for some first-time buyers to take a step onto the ladder. However, more support from the Government is needed.”
