Prices of residential housing fell in the past month for the first time in three years, data from Nationwide suggests.
Properties fell an average of 0.4%, dropping the average house price to £152,159 from £153,727 the previous month.
Annualised house price inflation fell to 15.3% from 17.8%, and if the trend continues the figure would drop to about 12% by the end of December.
This would be 3% below the annualised forecast issued by Nationwide in March this year, but 3% up on the forecast delivered last December.
Prices beyond the reach of first time buyers, problems trading up, falling buy-to-let yields and a traditional late summer-early autumn lull in the market are all factors blamed for the change.
Longer-term, however, Nationwide still sees a gradual decline in inflation rather than outright deflation, mostly as a result of continued high rates of employment.
"In addition, we believe that interest rates will also remain supportive if the base rate peaks close to 5% as this represents a historically low level - particularly given the highly competitive mortgage market. Our view is that the current moderation in price growth expectations will not translate into widespread panic and that instead the market will experience subdued levels of turnover and price growth," Nationwide says.IFAonline
Caring for children and elderly relatives
Similar to June 2007
Square Mile’s series of informal interviews
Fine reduced to £60,000
Two roles created