UK house prices slow in three months to September, Halifax reveals

UK house price growth eased in the three months to September, adding to signs the housing market is slowing after the EU referendum in June, according to Halifax on Friday.

Prices rose an annualised 5.8% in the quarter to an average of £214,024 following a 6.9% year-on-year increase in the three months to August. It marked the slowest pace in more than three years and comes after Britain voted to leave the European Union on 23 June.

On a quarter-on-quarter comparison, prices fell 0.1%. The monthly change in September was at 0.1% growth following two consecutive monthly falls.

"The housing market has followed a steady downward trend over the past six months with clear evidence of both a softening in activity levels and an easing in house price inflation,” according to Halifax housing economist Martin Ellis.

“A lengthy period where house prices have risen more rapidly than earnings has put pressure on affordability, therefore constraining demand. Very low mortgage rates and a shortage of properties available for sale should, however, help support price levels over the coming months.”

Halifax noted that mortgage approvals fell 1.4% in August compared to a month earlier, marking the third consecutive monthly decline. Approvals in the three months to August dropped 11% compared to the same period a year ago.

The bank also highlighted the shortage of supply in the housing market. RICS data showed the stock of homes available for sale fell for the third month in a row in August.