Homeowners can expect a considerable slowdown in house price growth with only a 0.6% rise this month based on Halifax data.

The latest data from the Halifax shows that house prices in the UK increased by only 0.6% and in the year to September up by 9.6% which is lower than the 10.2% recorded in July and 9.7% in August.

Average UK property values are now £187,188 but the Halifax has warned the rate of growth for the rest of the year will be reduced considerably.

The Nationwide showed conflicting data with house prices down 0.2% and the average property value being £188,374.

The indices used by the Halifax and Nationwide only include homes for mortgages placed through them are exclude houses bought with cash or 40% of the property market.

Lower housing activity

The number of homes sold in August has also reduced to 99,930. This is below the 100,000 level for the first time since November 2013.

There may be fewer suitable homes on the market as the equity release buyer can avoid downsizing and agree a lifetime mortgage to access cash from their home for holidays or gift to a family member.

Analyst are expecting house prices to rise at a slower level as first time buyers and home movers are delaying making a purchase. This could be due to the rise in property values and recent tougher mortgage rules.

The mortgage market review (MMR) introduced new rules from April this year requiring lenders to check affordability.

First time buyers, home movers and remortgage buyers will have their income levels checked as well as outgoings such as child care, holidays and living costs. It could mean that they cannot secure a mortgage and must delay their plans.

This does not apply to buy-to-let landlords as they must have a 25% deposit and show the rental income can exceed 125% of the mortgage interest.

There are improving prospects for homeowners and buyers as the economy recovers with lenders cutting rates and launching new products increasing competition to acquire a larger share of the market.

What are your next steps?

Speak to our LCM mortgage advisers if you are planning to move home, buying your first home, remortgaging your existing home to a new cost effective mortgage deal or are a buy-to-let investor.

Start with a free mortgage quote or call us and we can take your details. Learn more by using the mortgage cost calculators, equity release calculator and property value tracker chart.

For equity release buyers our London City Mortgage brokers can recommend lifetime mortgages allowing you to receive cash from your property to help maintain your standard of living as costs rise or pay university fees for grandchildren.

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