The report revealed that house prices rose by 0.6% between August and September, and prices in the three months to September were 9.6% higher than in the same three months a year earlier.
Although house prices are up, Halifax’s index shows the rate of growth easing.
Martin Ellis, housing economist, said:
"The recent rapid rise in house prices in some parts of the UK, earnings growth that remains below consumer price inflation and the possibility of an interest rate rise over the coming months, appear to have tempered housing demand. This weakening in demand has led to a modest easing in both house price growth and sales.
“Annual house price inflation may have peaked around 10%. A moderation in growth looks likely during the remainder of 2014 and into next year as supply and demand become increasingly better balanced."
Other data from British mortgage lender Nationwide revealed that the average UK house price dipped by 0.2% in September - the first drop in 16 months.
Commenting on the conflicting reports, Jonathan Samuels, chief executive of Dragonfly Property Finance, said:
"While the monthly figure of 0.6% growth is at odds with the Nationwide's -0.2%, there is, without doubt, a broader slowdown in the market. Both borrowers and lenders have become more cautious and this is moderating price growth. People sense that prices are toppy in some areas, know that an interest rate rise is coming and, despite the economic recovery, are not seeing any material change in their pay packets.
"The MMR has clearly put the brakes on the mortgage market. Bank of England data issued this week showed that the availability of mortgages fell quite sharply over the summer months. Even if mortgage activity does pick up, it's unlikely to be as strong as it has been over the past 12-18 months.
"Whether the mortgage slowdown during the third quarter was a temporary blip or the beginning of a new conservatism has yet to be seen. Few would argue that the price growth we have seen recently is sustainable. The IMF, for once, may be on the money when it expressed concern this week about the UK housing market posing a risk to economic stability."
Halifax's data did show mortgage approvals falling. Mortgage approvals for house purchases – a leading indicator of completed house sales – fell for the second consecutive month in August, to 64,200. Approvals were 16% below their recent peak in January 2014 and only 1% higher than in August 2013.
Commenting, Alex Gosling, managing director, online estate agents Housesimple.co.uk said:
"It's not just the weather that's got noticeably fresher - the property market is also showing signs of cooling. There's a fair bit of low pressure coming from falling mortgage approvals, weak earnings growth and the black cloud of interest rate rises looming ominously overhead.
"However, despite the rumblings of thunder on the horizon, there is nothing in these figures to suggest the market is in particularly bad shape. What we are seeing here is more likely a rebalance than the big freeze. After sustained growth over the past 12 months, the market is taking a breather.
"Buyer activity has dropped off a little but is still at a healthy level. In fact, after a slight lull in the first half of September, activity has picked up noticeably in the past few weeks with Christmas just a couple of months away. And competitive mortgage rates still make it an attractive market to buy into from a financial stand point.
"What we are seeing though, are a lot more second hand and new properties coming onto the market, which is re-aligning the demand supply balance.
