Prices fell in September says Halifax

Halifax has said that house prices fell by 0.6 per cent in September, with the annual rate of inflation down from 11.4 per cent in August to 10.7 per cent last month.

The figures are roughly in line with those reported by Rightmove last month, which showed a 2.6 per cent fall on the month, but contrast with Nationwide's own house price index, which showed growth of 0.7 per cent in September.

Halifax has said that it expects the annualised rate of growth to fall further in coming months as the strong gains seen at the end of 2006 drop out of the equation, but added that sound fundamentals would ensure that there was no significant correction.

"September's price fall is consistent with the normal behaviour of the market during a slowdown," commented Halifax chief economist Martin Ellis.

"A mixed pattern of monthly price rises and falls is a typical feature of a more subdued housing market.

"High levels of employment and a shortage in the number of properties available for sale will continue to support house prices," Mr Ellis added.

The average price of a home is now £198,500, according to the lender.


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