By Daniel Hunter
The latest figures from Halifax have shown that UK house prices dropped 0.4% in September, as the weak economy weighed on demand.
The data also shows a 1.2% annual drop in values, leaving the average house price at £159,486.
"Overall, there has been very little change in the average UK house price so far this year," Martin Ellis, housing economist, said.
"There is, nonetheless, evidence of a slight deterioration in the trend recently with prices in the three months to September 0.5% lower than in the previous quarter. The average price fell by 0.4% in September; the third successive monthly decline.
"The generally weak economic climate remains a significant constraint on housing demand. The relatively low level of mortgage payments in relation to income, however, continues to provide support for house prices. We expect house prices to be broadly unchanged over the rest of this year and into 2013."
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