UK house prices stalled in September for first time in 19 months

British house prices stayed flat in September for the first time in 19 months, a survey out on Friday showed.

Demand for homes fell by 2.1% this month and the number of new buyers registering with agents has now fallen every month of this quarter, and by 4% over the last four months, the Hometrack September national housing survey showed.

Hometrack blamed the slowdown on continued weak demand from buyers and less pent-up demand, which was increased when the government's Help to Buy shared equity scheme was launched in early 2013.

It said London, where prices have soared, was facing a more severe slowdown with continued falls in prices achieved. London was the only region to record a price fall in September - of just -0.1% – with further modest price falls likely in the months ahead.

Regulatory moves to cool the overheating housing market are likely to be behind the slowdown, with the Mortgage Market Review forcing lenders to take more account of borrowers' ability to pay and the Bank of England capping loan-to-income ratios.

Hometrack research director Richard Donnell said: "There’s a distinct chill in the air this month. While this slowdown can be attributed partly to seasonal factors – including a slight hangover from a slow August – it’s clear that agents are wary about the direction of the market as a result of weaker demand and lower sales volumes.

"Buyer uncertainty is growing in the face of a possible interest rate rise, a general election on the horizon and recent warnings of a house price bubble."