British house prices fell 0.2% for a second straight month in September, taking the annual rate of increase to its weakest in more than nine years, the Nationwide building society said today.
The year-on-year rate of just 1.8% was the slowest since May 1996 and took the price of the average home to £156,517 sterling from £157,310 the month before.
The figures stood in contrast with recent data on mortgage approvals which have suggested to some analysts that the property market might be showing tentative signs of improvement following months of price stagnation. Just a year ago, British house prices were increasing by an annual rate of almost 20% on Nationwide's measure.
Nationwide said that in the three months to September house price growth had stalled completely on the previous three months and was up just 2.7% on the year.
The mortgage lender said that the Bank of England's quarter-point interest rate cut to 4.5% last month as well as slower house price growth were helping to support market activity.
'Estate agents have consistently reported increased buyer interest over the last few months, which should help to support the market going forward,' said Fionnuala Earley, group economist at Nationwide.
