The housing market will settle into a slower period of growth this autumn, with prices expected to increase by 0.7% to £341,492 over the next three months, according to forecasts by Reallymoving.

Breaking down the projections month by month, Reallymoving expects prices to dip by 0.5% this month, as a result of deals agreed in June, when buyers were forced to factor in the cost of paying stamp duty once again, constraining budgets. 

However, prices are expected to pick up by 1.3% in October after the stamp duty holiday deadline passes, partly as a result of the shortage of available homes coming to market, followed by a slight drop of 0.1% in November.

Looking at year-on-year growth, prices were up by 4.3% to £337,445 in the 12 months to September.

Annual house price growth has been in double digits for most of the last year but it is now returning to more normal levels.

Annual growth is predicted to slip into negative territory in October with prices down 0.1% year on year, before recovering to 1.9% in November.

Reallymoving bases its projections on the purchase prices it captures when home buyers search for conveyancing quotes and other moving-related services on its comparison platform.

Buyers typically search for quotes three months before their purchase completes, which provides an indicator of house price trends over the months ahead.

Conveyancing quote volumes have returned closer to seasonal norms suggesting that buyer demand is stabilising following a period of extraordinary activity and growth.

Reallymoving chief executive Rob Houghton says: “The rate of house price increases over the last year has been remarkable but it’s been a difficult period for first-time buyers and we welcome a return to more stable levels of growth. 

“The housing market is in good shape heading into the autumn as the impact of the stamp duty holiday works its way out of the system, demand returns to more normal levels and once again the market proves its underlying resilience.

“Competition among cash-rich mortgage lenders has reduced borrowing costs to record lows, alongside a strong economic recovery and jobs market – all of which are boosting consumer confidence and prompting people to make their move now and take advantage of five-year fixed rate deals available at less than 1%. 

“While interest rates stay low and supply remains constrained, despite monthly fluctuations the overall market trend will be steadily upwards.”