Over the past 12 months prices risen by 1.3%, the slowest annual rate since April 2024

The average UK house price edged down by 0.3% (£794) in September, following a modest rise in August.

The typical home now costs £298,184. Over the past 12 months prices risen by 1.3%, the slowest annual rate since April 2024.

This is according to the latest Halifax House Price Index which suggests this slight monthly decline in prices reflects a housing market that has remained broadly stable, prices are up 0.3% since the start of the year.

Commenting on the latest figures Halifax head of mortgages Amanda Bryden said: While affordability remains a challenge, a relatively lower mortgage rate environment and steady wage growth have helped support buyer confidence.

Although the broader economic outlook remains uncertain, with the affordability picture gradually improving, we continue to expect modest growth through the remainder of the year, she said.

Quilter mortgage expert Karen Noye commented that the market continued to tread water as buyers and sellers adjusted to affordability pressures and a cautious lending environment.

The government’s plans, announced yesterday, to reform the house-buying process could help reduce costs and delays over time. The proposals to require sellers to provide key information up front and explore binding contracts are designed to make transactions quicker and more transparent. But while these changes may improve confidence, they will not solve the deeper affordability challenge that continues to weigh on the market, she said.

She added: The latest ONS data also suggest households may have far less of a financial buffer than previously thought. The revised figures halved the estimated household savings ratio for late 2022, implying many families saved significantly less during the post-pandemic recovery than earlier believed. With smaller savings cushions, more households may find it difficult to absorb higher mortgage costs or build deposits.

Noye concluded that with borrowing costs still high, weaker household finances and potential tax changes on the horizon, house prices were likely to remain broadly stable in the near term, with regional trends reflecting local supply and demand rather than a clear national direction.