The rise of UK house prices in the year to September has slowed down, according to research from Halifax.

In its annual house price index, the banking chain reported house prices were 8.6% higher than in the same three months last year.

Overall, the figure is 2% higher than between July and September, yet lower than the 9% rise recorded in August.

In addition, Flat prices have risen the most, with a 60% increase in the average price of a flat over the last ten years, 38% higher than the rise for all residential properties.

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Detached homes have seen the smallest price rise, at 21%.

On a monthly basis, house prices fell by 0.9% between August and September.

The average price of a house is now £202,859.

Commenting on the data, Martin Ellis, Halifax housing economist, said: "Housing demand has been strengthening recently, underpinned by economic growth, rising real earnings and very low mortgage rates.

"Increasing demand is combining with very low supply to drive robust underlying house price growth.

"There is little reason to expect any fundamental shift in the key market drivers over the coming months."

(LM/CD)