House price growth crawls to its slowest pace for six years as uncertainty persists

Annual house price growth has slowed to its lowest since April 2013 last month, Halifax claims.

However, the lender still puts annual house price inflation at above 1%, when Nationwide has recorded the figure at under 1% for the last ten months, and put the figure at just 0.2% in September – the same month that Halifax has just reported on.

Halifax says average prices in September were up 1.1% annually and fell 0.4% on a monthly basis to £232,574.

Russell Galley, managing director, Halifax, said: “Annual house price growth slowed somewhat in September, rising by just 1.1% over the last year.

“Whilst this is the lowest level of growth since April 2013, it remains in keeping with the predominantly flat trend we’ve seen in recent months.

“Underlying market indicators, including completed sales and mortgages approvals, continue to be broadly stable. Meanwhile for buyers, important affordability measures such as wage growth and interest rates still look favourable.

“Looking ahead, we expect activity levels and price growth to remain subdued while the current period of economic uncertainty persists.”

The Halifax figures are now being worked out under a new methodology amid criticism from market analysts. For July, Halifax claimed that house price inflation was at over 4%.

While now closer to Nationwide’s estimates, there is still a significant gap between the two indices, which both rely on mortgage data.

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