Halifax figures for September show eighth consecutive month-on-month drop

UK house prices fell 1.3% in September, taking the annual fall to 12.4%, according to new figures from Halifax.

The mortgage lender said the cost of the average home in the UK now stood at £172,108 after the eighth consecutive month-on-month drop.

It said three month comparison figures suggested the rate of decline was beginning to stabilise but the market would remain “challenging”.

Halifax chief economist Martin Ellis said: “The ongoing pressures on householders’ income, combined with the reduction in the availability of mortgage finance mean that market conditions will remain challenging.”

Ellis welcomed the Bank of England’s move to cut interest rates by 0.5% on Wednesday, saying it would provide “valuable support to the housing market”.