Annual house price growth ‘slows to single digits’

Annual house price growth slowed to single digits in September, according to Halifax.

The lender’s monthly house price index shows house prices grew by 9.9% in September, down 11.4% year-on-year and a return to single digits for the first time since January.

House prices fell 0.1% month-on-month and have now fallen twice in the last three months.

Halifax said prices have been flat for several months, before the spike in mortgage rates and interest rates following last month’s mini-budget.

Kim Kinnaird, director at Halifax Mortgages, said: “The events of the last few weeks have led to greater economic uncertainty, however in reality house prices have been largely flat since June, up by around £250.

“This compares to a rise of more than £10,000 during the previous quarter, suggesting the housing market may have already entered a more sustained period of slower growth.”

See also: Housebuilding work grew in September amid deepening gloom

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The figures come as mortgage rates have risen to their highest for 14 years. According to data service Moneyfacts, the average mortgage rate for a two-year fixed product earlier this week was 6.07% - the last time the average two-year fixed rate mortgage was 6% or more was in November 2008 at 6.31%. The rate compares with an average rate of 4.74% on September 23 meaning the average rate has risen 1.33% since chancellor Kwasi Kwarteng’s mini budget.

Moneyfacts also revealed at the end of last month a third of all mortgage products had now been withdrawn by lenders since the government’s “mini budget” announcement.