Lenders and brokers have taken last week's drop in the Halifax house price index as sign of more sustainable increase in property value, rather than warning of a price collapse.
The 0.5% fall is the same size as that recorded by the Nationwide index two weeks ago.
It is the first fall that Halifax has recorded since December 2000, and shows a decrease in the number of mortgages approved during October. As such, it captures more of the fallout following the 11 September strikes than the previous month's index, which showed house prices unchanged. The Halifax now puts the average price of a house at £93,616.
Halifax chief economist Martin Ellis says: “There are clear signs that house price growth is slowing down, but we think it is a slowdown rather than a crash.”