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UK house prices hit a five-month low in October, figures from Halifax showed on Monday, as the property market continues to show signs of a slowdown in the face of rising interest rates.
UK house price growth slowed to 8.3% on an annual basis in October, having surged 9.8% in September.
On a monthly basis, house prices fell by 0.4% in October from September. They had slipped by 0.1% in September from August.
"Average house prices fell in October, the third such decrease in the past four months. The drop of 0.4% is the sharpest we have seen since February 2021, taking the typical property price to a five-month low of £292,599," Halifax analyst Kim Kinnaird said.
"Though the recent period of rapid house price inflation may now be at an end, it's important to keep this is context, with average property prices rising more than £22,000 in the past 12 months, and by almost £60,000 over the last three years, which is significant."
The Bank of England lifted UK interest rates by 75 basis points on Thursday, taking bank rate to 3.00%. This time last year, the key interest rate was just 0.10%.
Kinnaird commented: "Understandably, we have also seen consumer caution grow, as industry data shows mortgage approvals and demand for borrowing declining. The rising cost of living coupled with already stretched mortgage affordability is expected to continue to weigh on activity levels. With tax rises and spending cuts expected in the autumn statement, economic headwinds point to a much slower period for house prices."
UK Chancellor Jeremy Hunt presents his autumn statement on November 17.
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