In a fresh blow to the property market, figures due to be published today show that house prices fell for the third month in a row in September – by 0.1 per cent.
Analysts at Hometrack said despite the Government's Funding for Lending scheme supporting a modest increase in mortgage borrowing, the continuing uncertainty surrounding the economy and ongoing affordability issues will act as a drag on housing market activity for some time to come. Richard Donnell, director of research at Hometrack, predicted house prices will continue to drift slowly lower over the remainder of the year. September also saw the first monthly decline in supply, slipping down 0.9 per cent.
No region registered price increases in September. House prices were static in London and the south west and fell in all other regions.