Home buyers paid and borrowed less for properties, particularly in the south of England during September, thanks to more stock in these areas coming to market, the Mortgage Advice Bureau says.

The broker’s data, based on mortgage applications for September, suggested buyers borrowed 0.8% less overall than in August for a property, with purchase loans falling to £170,406 on average.

The average property price paid in September was £245,887, slightly down on £247,129 the month before.

First-time buyers paid 0.17% less than August, at £208,865, and borrowed around the same at £151,992 in September, compared with £152,054 in August, brokers said.

On a regional basis, average loans sizes in London dropped 0.6% to £337,658, and were down 10% annually.

In the south-east, average loans were down 1.6% since August to £213,684, a 2.8% fall.

South-west borrowers paid 0.2% less on average since August at £165,042, but this was up 6.1% compared with last year.

Brian Murphy, head of lending for the Mortgage Advice Bureau, said: “London and the south-east which have, up until now, been badly affected by a dearth of first-time buyer-friendly properties, are now seeing more and more properties at entry level coming on to the market – an outcome that has enabled many of those who want to get on to the ladder in these particular areas to take advantage of competitively priced mortgage deals available and purchase in September.”

There were regional disparities when it came to changes in loan values. The east of England saw a 6.49% monthly drop in average loan prices at £139,827, but the neighbouring west midlands saw a 0.1% increase to £175,786.

Yorkshire & the Humber saw a 1.7% drop in loan sizes while the neighbouring north-west saw a 2.6% jump to £130,312 on a monthly basis.

Murphy added that mostly over the UK, property price growth continues to be underpinned by shortage of stock.

He said: “It’s likely that against this mixed picture, the market will remain flat overall as we head towards the final quarter of the year, with the busier areas potentially rounding out any decline in activity from regions where demand is less evident.”