A drop in mortgage lending to first-time buyers signals a dip in confidence among those intending to buy a home, according to mortgage brokers.
The number of loans approved to first-time buyers stood at 26,800 in September, the latest figures from the Council of Mortgage Lenders (CML) show.
House prices in England and Wales fell by 0.2% in September - the biggest monthly fall in nearly a year, according to the Land Registry.
Annual house price inflation also fell, from 8.4% in August, to 7.2% in September.
That is the first time since May 2013 that the yearly rate has gone down, the Land Registry said.
Annual house price growth accelerated to 8.4% in England and Wales in August - the highest rate of increase for nearly seven years, figures show.
The Land Registry said prices were up by 1% compared with July, with increases again driven by London.
Four luxury apartments in a development with views of Buckingham Palace have broken the price record for properties in London’s Mayfair – an announcement that will add to fears that wealthy foreign buyers are fuelling a housing bubble in the capital.
British Land, one of Britain’s biggest developers, said it had sold 18 of the 34 flats in its “super-prime” Clarges Mayfair development for a total of £210m – an average of just over £11.6m each – even though work only began on the site earlier this year.
Six regions of the UK now have average house prices higher than their pre-financial crisis peak after values rose again in July, figures show.
The East Midlands, West Midlands and South West of England have joined London, the East of England and the South East of England in rising above the peak of late 2007 and early 2008.
The housing market has reached a "plateau", according to a survey of chartered surveyors across the UK.
The Royal Institution of Chartered Surveyors (RICS) said the number of house sales agreed in August fell for the first time in two years.
Surveyors also expect prices to rise more rapidly outside London than in it.
The Confederation of British Industry has said a "perfect storm" is brewing in the housing market.
The annual pace of US house price growth slowed in June, a survey has indicated, continuing a long-term deceleration in the US housing market.
The S&P/Case Shiller 20-city index saw an 8.1% year-on-year price increase in June, compared with a 9.4% rise in May.
Annual house price inflation was 10.2% in June, compared with 10.4% in May, according to the Office for National Statistics (ONS).
The rise was again driven mainly by London, where house prices increased by 19.3% over the year, a slight drop from the previous month's figure.
Excluding London and the South East, prices rose by 6.3% across the UK.
Prices were up in every region, including Northern Ireland, where they rose by 4.9%.
Homeowners could be compensated if the value of their property falls when new garden cities are built, Deputy Prime Minister Nick Clegg has suggested.
Mr Clegg told the BBC's Countryfile the government could buy homes blighted by developments or offer owners council tax cuts while building takes place.
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