Halifax reports house prices dip in September, up 8.6% on quarter

House prices for the three months to September were 8.6% higher than the previous year, but dipped slightly from the previous month, according to the latest Halifax House Price Index.

The report found that house prices rose 2.0% for July to September compared to the April to June quarter – the lowest quarterly rate of change since 2.1% in May.

Month on month house prices dipped 0.9% in September after August’s gain of 2.7%, and the average price of a house sits at £202,859.

However the report noted that monthly movements can be volatile and the quarter on quarter change is more reliable.

It also reported that flat prices rose the most with separate research showing 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.

Halifax housing economist Martin Ellis said housing demand has been strengthening recently.

“[It is] 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.”

Ellis noted there is little reason to expect any fundamental shift in key market drivers over the coming months.