House price falls ‘levelling off’

Two of the country's biggest mortgage lenders have suggested falling house prices may finally be stabilising.

The Halifax and Nationwide both said the rate of decline across three-monthly figures was levelling off but warned that conditions were likely to remain challenging.

Data from the Halifax revealed a 1.3% fall in prices in September, taking the annual fall to 12.4%.

The bank also welcomed the 0.5% interest rate cut announced by the Bank of England.

"Lower interest rates will help mortgage borrowers faced with increasing pressures on their finances and provide a valuable support to the housing market," said Martin Ellis, chief economist at the Halifax.