The lender puts the standardised average house price at £93,616.
Halifax said that this was the likely result of the response to a general easing in economic growth, deteriorating employment prospects and the blow to consumer confidence following September’s terrorist attacks in the US.
Martin Ellis, group economist at the Halifax, said: “While this was the first monthly fall in 2001, it was smaller than the decline recorded in October last year. As a result, the annual rate of house price inflation increased, from 8.8 per cent in September to 9.4 per cent.”
“House price movements over the past few months as a whole indicate a clear downward shift in the underlying trend, with prices increasing at a somewhat slower pace compared with earlier in the year. This is consistent with reports from estate agents and house-builders and the latest market figures on the number of mortgage approvals, which all show signs of a slowdown in housing market activity.
“This weakening in the housing market is largely in response to the general easing in the pace of economic activity this year, with the softening in consumer confidence since the summer and the recent fall in employment likely to have been particularly important factors. A knock to confidence in the immediate aftermath of September’s terrorist attacks in America may also have contributed to last months small fall in prices.”
“Looking ahead, continuing economic growth, low interest rates and housing affordability levels that are not stretched should support the housing market. We expect house prices to continue rising over the coming 12 months, albeit at a more modest pace.”
