UK house prices fell by record 3.6% in September Halifax says

House prices fell by 3.6% in September from the previous month, according to the Halifax- the largest fall on record.
However, the bank, now part of the Lloyds Banking Group, said it was too early to conclude that this was the start of a sustained fall in prices.

The three month on three month comparison, seen as a smoother measure of prices showed a 0.9% drop in September.

The average UK home is now valued at £162,096, the survey found.

Prices remained 2.6% higher than a year ago, the figures show, although this was down from a 4.6% rise reported in August.

It also brings it close to the 3.1% annual change reported recently in the house price index from the Nationwide Building Society.

The 3.6% drop was the biggest fall in month on month prices since the figures were first compiled in 1983.

Low transaction levels in the housing market meant that there was volatility in the month-on-month measure of house prices, Halifax’s housing economist Martin Ellis said.

However, he said that an increased number of properties available for sale in recent months had pushed down prices.

Analysts agreed that the headline monthly fall was not a good guide to conditions in the market.

However, longer term he was expecting a sharp fall in prices.