"A moderation in growth looks likely during the remainder of 2014 and into next year as supply and demand become increasingly better balanced"
- Halifax
UK house prices rose at a more rapid face than expected on month in September, but the market is expected to moderate heading into next year, according to Halifax survey. House prices gained 0.6% last month, while in the three months to September, prices advanced 9.6% compared to the same period last year, down from 9.7% during the three month to August. The price of the average home rose to £187,188 last month, up just over £1,000 from August, said Britain's biggest mortgage lender. Halifax said that a rise in house prices in some regions of Britain, slow wage growth as well as the possibility of interest rate increase in the foreseeable future appeared to have sapped demand. Halifax also said there were further signs of a better balance between demand and supply, which pushed down on price growth. Rival lender Nationwide reported a decline in house prices of 0.2% in September, the first drop in 17 months. This followed three months of advances reported by the Nationwide. It puts the average property price at £188.374. Last week the BoE's Financial Policy Committee said that there was no immediate risk to stability from the housing market and the government's credit incentives schemes. A separate report showed Britain's shop prices dropped further into deflationary zone after falling 1.8% in September from the previous year. The BRC said food inflation was subdued at 0.3%, while non-food product prices fell 3.2%.
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