House price growth in the UK has come to a standstill, new research indicates.
September's National Housing Survey from Hometrack has found that house prices have failed to increase this month for the first time since the start of 2013.
Hometrack said that demand had fallen by 2.1% since August and blamed the slowdown on a loss of momentum in the Help to Buy scheme, which has been running for almost 18 months.
The company added that London in particular was experiencing a "pronounced slowdown" in property market activity. The capital in fact recorded a fall in average prices during September, while further dips were predicted for the months ahead.
Richard Donnell, director of research at Hometrack, said: "There's a distinct chill in the air this month: after a strong run over the last 18 months, the momemtum of house price rises has started to turn with growth now at a standstill for the first time since January 2013.
"While this slowdown can be attributed partly to seasonal factors - including a slight hangover from a slow August - it's clear that agents are wary about the direction of the market as a result of weaker demand and lower sales volumes."
Donnell added that buyer uncertainty was on the up due to the possibility of an imminent interest rate rise, as well as the upcoming General Election and recent warnings of a house price bubble.
"The debate over economic implications for Scottish independence could well have added to the uncertainty in recent weeks," Donnell added. "Played out against a backdrop of tougher mortgage affordability checks and limits on high loan-to-income lending, higher-value postcodes of inner London are clearly being impacted."
Donnell said that the price rises of the last year and a half had been fuelled by pent-up demand and the government-backed Help to Buy scheme.
"That surge of demand has now receded, bringing the latest cycle to an end with no equivalent buyer push' or pull' on the horizon.
"Although the lead indicators suggest that buyers will start to gain the upper hand, there are many homeowners who don't need to sell and won't bother unless it's financially beneficial to do so. The net result is a likely drop-off in activity in the coming months."
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