It is the third consecutive month of price drops, as measured by Halifax.
The typical home value now stands at £285,579, while the annual rate of growth has halved down to 4.7 per cent from 8.2 per cent.
The market has slowed across the majority of the UK except in the North East, which saw an annual growth edge up to 10.5 per cent.
It is the only region where growth is in double figures while the average property price there now stands at £173,587.
Wales and the South West have seen the sharpest slowdown of annual growth, according to the data.
Affordability pressures mount up
Kim Kinnard, director of Halifax mortgages, said: “Some potential home moves have been paused as homebuyers feel increased pressure on affordability and industry data continues to suggest that many buyers and sellers are taking stock while the market continues to stabilise.
“When thinking about the future for house prices, it is important to remember the context of the last few years, when we witnessed some of the biggest house price increases the market has ever seen.
“Property prices are up more than £12,000 compared to this time last year, and well above pre-pandemic levels.”
‘Further softening is inevitable’
Mark Harris, chief executive of mortgage broker SPF Private Clients, added: “Annual house price growth continues to slow, as activity softens and the market gradually returns to something closer to what we were used to pre-pandemic.
“Mortgage rates continue to float gently downwards but the psychological five per cent barrier has been broken for both two and five-year fixes.
“With the next inflation data due next week and the MPC expected to announce another half-point increase in base rate, along with the usual festive slowdown, further softening is inevitable.”
