House price growth slowed in September with an annual rise of just 1.1%, the latest Halifax House Price Index has revealed.
The average price of property was £232,574 which represents a monthly decline of 0.4%.
Despite this slowed growth, house prices saw a quarterly increase of 0.4% in September.
Russell Galley, managing director at Halifax, said: “Whilst this is lowest level of growth since April 2013, it remains in keeping with the predominantly flat trend we’ve seen in recent months.
“Underlying market indicators, including completed sales and mortgages approvals, continue to be broadly stable.
“Meanwhile for buyers, important affordability measures – such as wage growth and interest rates – still look favourable.
“Looking ahead, we expect activity levels and price growth to remain subdued while the current period of economic uncertainty persists.”
This comes after Bank of England figures showed a 2.2% decline in the number of mortgage approvals between July and August.
This decline in mortgage approvals is despite HMRC data showing a rise in the number of home sales in the same month, reaching its highest level since November 2018.
Mark Harris, chief executive at SPF Private Clients, added: “Transaction numbers are low so lenders are having to work incredibly hard to generate business and stand out from the competition.
“This means even further cutting of fixed-rate mortgages, while those lenders who can’t compete on price are having to tweak criteria and be more flexible than perhaps they might have been in the past.
“This is excellent news for borrowers and once buyers return to the market, when the uncertainty is removed from the equation, there are some extremely competitive products for them to take advantage of.”
Tomer Aboody, director of MT Finance, also commented: “It is not surprising that there has been a little growth in property prices because some people have to get on with their lives, but there isn’t more of it as others are procrastinating.
“Brexit is the main cause of inaction and either way it has to be resolved.
“The last quarter of the year is usually one of the busiest for our industry. Everyone you talk to expects it to be busier than the previous three quarters but that is a seasonal situation and no different to any other year.
“It’s all relative because the market has been so difficult this year.”