House price growth will stabilise for the rest of the year and into early next year, according to Halifax.
The lender’s latest house price index revealed house prices rose 0.6% between August and September, with the average house now costing £187,188. Annual house price growth now stands at 9.6% to the end of September, falling slightly from a peak of 10.2% in July.
This contradicts Nationwide’s latest survey which said that prices fell by 0.2% between August and September.
Halifax said that this slowdown in house price growth was likely as “supply and demand become increasingly better balanced”.
The housing market has slowed down over the summer months, according to lenders. There are a number of different factors behind this, such as the Mortgage Market Review which came into force in April and introduced stricter lending critera, as well as borrower concerns about the likelihood of a rise in interest rates.
As a result, according to the latest survey by the Bank of England, lenders reported that credit lending had fallen to levels not seen since the end of 2008. However, lending is expected to bounce back as banks get used to the new regulations and strive to win back market share.