While Nationwide reported a slight increase in prices, Halifax has swung the other way.
Research showed that overall house prices in the three months to October were 0.3 per cent higher than in the previous quarter - continuing a steady downward trend which began at the end of 2006.
The annual rate of house price growth fell to 8.9 per cent in October from 10.7 per cent in September. The annual rate should decline further over the next few months as the strong monthly house price gains during the autumn of 2006 drop out of the year-on-year comparisons.ยท
Mortgage approvals to fund house purchase also fell. Dropping 6 per cent in September, approvals were also 11 per cent lower in Q3 2007 than in Q3 2006. New buyer interest in purchasing a house fell for the tenth consecutive month in September, demonstrating that potential buyers have become more cautious.
Commenting, Martin Ellis, chief economist, said: "These figures continue to show the steady easing in house price growth since the end of 2006.
"The rise in interest rates since August last year and negative real earnings growth so far this year are curbing housing demand, leading to a slowdown in both price growth and activity.
"The UK economy is in a strong position. Sound market fundamentals, including high levels of employment and a shortage in the number of properties available for sale, will continue to support house prices."
A mixed pattern of monthly price rises and falls is a typical feature of a more subdued housing market. For example, there were six monthly falls and six monthly increases between July 2004 and June 2005 as the market slowed in response to a series of interest rate rises during 2004. It is not unusual to see successive monthly falls in these circumstances.
