Average house prices in England and Wales fell 2.9% to £366,348 in the year to September and continue to drop at their fastest pace over the last 12 months for 14 years.  

Last month, prices fell by 0.3%, easing from the 0.4% fall in August, data from the e.surv Acadata House Price Index shows. 

Home prices have fallen every month since last November, apart from May, when prices were flat. 

The dip in September was the fourth largest monthly fall of the year, with home prices now at levels last seen last June. 

Only two areas saw prices rise last month, Yorkshire and Humber, rising 0.6% to an average house price of £244,300 and the North East, lifting 0.2% to £195,092. 

Average house prices in Greater London were flat in September at £704,351.   

E.surv director Richard Sexton says: “Although September saw a less severe drop in house prices compared to August, house prices in England and Wales fell at their fastest pace over the last 12 months since 2009. 

“The fall in UK house prices is largely down to the higher cost of mortgage finance plus the squeeze on disposable incomes from the higher cost of living.  

Sexton adds: “Across the UK’s biggest lenders, the average mortgage rate for a five-year fix with a 75% loan-to-value ratio currently sits at 5.1%, the lowest since July 2023, according to the Bank of England.  

“The pause in base rate hikes and increasing competition in the mortgage market may see a return of some buyers who delayed their home moving decisions earlier in the year now returning to the market.  

“However, many other buyers are still waiting for mortgage rates to come down further and for the right property to become available.”