UK house prices down slightly - report

House prices in the United Kingdom fell during September, mortgage lender the Halifax said today.

House prices in the United Kingdom fell during September, mortgage lender the Halifax said today.

In its monthly survey, the Halifax said house prices were 0.6 per cent lower in September from August, bringing the annual rate to 10.7 per cent from 11.4 per cent in August.

The figures are below expectations for a modest rise of 0.4 per cent on the month and 11.6 per cent on the year.

"September's price fall is consistent with the normal behaviour of the market during a slowdown," said Martin Ellis, chief economist at Halifax.

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It is also evidence that rate increases by the Bank of England since last year are starting to take effect, although the bank is expected to refrain from further hikes until financial market turmoil settles down.

Agencies