Prices in the three months to September were 8.6% higher than in the same three months a year earlier - lower than August’s 9.0%, but in line with the average so far this year.
House prices in the latest three months (July-September) were 2.0% higher than in the preceding three months (April-June). The quarterly rate of change fell from August’s 3.0%, to its lowest since May (2.1%) .
On a monthly basis, house prices fell by 0.9% between August and September following last month’s gain of 2.7%.
Separate research showed that there has been a 60% increase in the average price of a flat over the past ten years; significantly higher than the 38% rise for all residential properties. Detached homes (21%) and bungalows (28%) have recorded the smallest rises over the last decade.
Martin Ellis, Halifax housing economist, said:
“Housing demand has been strengthening recently, underpinned by economic growth, rising real earnings and very low mortgage rates. Increasing demand is combining with very low supply to drive robust underlying house price growth. There is little reason to expect any fundamental shift in the key market drivers over the coming months.”
Jonathan Adams, director of prime central London estate agency Napier Watt, said:
"Despite the dip in property prices in September, the underlying trend is fairly robust. However, the national average masks significant regional differences and should be regarded with a healthy dose of scepticism.
"The housing market is fragmented with higher-value properties struggling to sell as international buyers become more fickle and scared off by the tax incurred when purchasing high value residential property. There is very much a ripple effect - the action has moved out from prime central London to the outskirts and those commuter areas where there is better value to be had, although not as much if prices continue to rise as they have been.
"Plenty of stock came onto the market in September, with a number of properties relaunched with price reductions. The autumn market is short - there isn’t much time to sell a property before things slow down in the build up to Christmas - so sellers who are serious about selling must be realistic on pricing and be prepared to compromise. Many properties are now priced where they should have been when they first came to market in the spring but it could be argued that they are still not as low as they need to be.
"For those wishing to sell these high-value properties it is essential that they are aware of the new landscape and adjust their pricing structure accordingly. There is no doubt that prime central London in particular will remain exceptionally sought-after with continued inward investment but we cannot expect double digit property inflation to continue while the government continue to take a higher and higher tax revenue from these international buyers."
