UK house prices stalled in September, with no growth on both a monthly and an annual basis, according to an index.
Lloyds recorded a 0% month-on-month change in property values in September, following a 0.3% fall in August.
It also recorded no change compared with September last year, following a 0.4% annual dip in August.
Across the UK, the average house price in September was £298,441 ($395,359).
Andrew Asaam, mortgages director at Lloyds, said: “While the market overall has been fairly subdued, property prices have so far proved resilient during a period of higher mortgage rates, which has been driven by changing expectations around the future path of [the Bank of England] base rate.
“That’s mirrored in wider economic data, with household spending holding up better than many expected despite energy and other cost pressures arising from the Middle East conflict.
“Whether that picture continues is likely to depend on how confident consumers feel that the latest cost‑of‑living pressures will prove temporary.
“Confidence has long been a key driver of housing market activity, and will play an important role in shaping demand over the remainder of this year and into 2027.
“For now, the housing market appears to be balancing buyer caution with continued underlying demand.”
On Monday, the average five-year fixed homeowner mortgage rate on the market reached the 6% mark for the first time in three years, according to financial information website Moneyfacts.
Ian Futcher, a financial planner at wealth manager Quilter said: “Lloyds’ latest house price index shows UK property prices flatlined in September, leaving annual growth flat at 0.0% and the average home valued at £298,441.
“The market is facing gathering dark clouds on several fronts, with affordability, confidence and borrowing costs all coming under pressure, which is in turn causing house prices to stall.
“The forthcoming Budget is adding another layer of uncertainty, with some buyers choosing to sit on their hands until there is greater clarity on the Government’s tax and housing policy agenda.
“When purchasing a home is one of the biggest financial decisions a person will ever make, uncertainty alone can be enough to delay a move by weeks or even months.
“The ongoing conflict involving Iran continues to cast a long shadow over the economic outlook.
“Concerns that elevated energy prices and broader geopolitical uncertainty could keep inflation higher for longer have filtered through to financial markets, raising questions about the path of future interest rates and leaving households facing a more uncertain economic backdrop.