House prices rose at a slower rate than expected in September, according to the latest data from mortgage lender Halifax.
Prices slowed from 6.9 percent in the three months to August to just 5.8 percent in the three to September, their slowest rate in over three years. The property market has so far remained largely unaffected by the Brexit vote, however the latest figures may be evidence that negative investor sentiment is beginning to bite.
Martin Ellis, Halifax housing economist, said in a statement:.
“The reduction in annual house price growth from a peak of 10.0 percent in March to 5.8 percent six months later remains in line with our forecast at the end of 2015.
“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,” he said.
In monthly terms, prices saw their first increase since June. However Ellis cautioned that quarterly figures were the the more reliable indicator, which saw house prices 0.1% lower lower than they were between April and June.
