House price growth moderates during September

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The latest Halifax house price index has found that house price growth dipped in September.

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.”