House prices declined by 3.6% in September from October - the biggest fall in month-on-month prices since the figures were first compiled in 1983, according to data released from the Halifax.

The quarter on quarter comparison, seen as a smoother measure of prices, showed a 0.9% drop in September. The average UK home is now valued at £162,096

"Prospects for the housing market remain uncertain. Earnings growth is expected to be very modest over the next year, tax rises are on the way and more people are putting their homes on the market," said Halifax's housing economist Martin Ellis.

"These will all be constraints on the market, dampening house prices. On the positive side, we expect interest rates to remain very low for some time, which will underpin the improved affordability position for homeowners."