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.

Several lenders, including the Halifax, have already announced reductions to their standard variable rate by 0.5% following the Bank of England's decision.