House prices in the three months to September were 5.8 per cent higher than in the same three months of 2015, Halifax has reported.
The annual rate of growth eased from 6.9 per cent in August.
The lender’s house price index showed house prices in the last three months (July to September) were 0.1 per cent lower than in the preceding quarter.
The average house price is now £214,024.
Martin Ellis, Halifax housing economist, said: “House prices in the three months to September were largely unchanged compared with the previous quarter.
“The housing market has followed a steady downward trend over the past six months with clear evidence of both a softening in activity levels and an easing in house price inflation.
“The reduction in annual house price growth from a peak of 10 per cent in March to 5.8 per cent six months later remains in line with our forecast at the end of 2015.
“A lengthy period where house prices have risen more rapidly than earnings has put pressure on affordability, therefore constraining demand.
“Very low mortgage rates and a shortage of properties available for sale should, however, help support price levels over the coming months.”
Mark Harris, chief executive of mortgage broker SPF Private Clients, said: "Despite the uncertainty and concern surrounding the referendum, the market seems to have quickly absorbed the ramifications of the UK’s decision to leave the EU.
"We were concerned that Brexit would mean the market would stall with buyers and sellers racked with indecision but that doesn’t seem to have happened.
"It certainly helps that mortgage rates are so cheap and it looks as though we will be in an extremely low interest rate environment for the foreseeable future so there is great value to be had.
"The remortgage market is particularly strong, with homeowners taking advantage of low rates and trying to obtain some security to deal with the uncertain times that we are living in.
"Currently, the bulk of our business is remortgaging, with some clients taking the opportunity to pull out a chunk of money at the same time as locking into a cheap rate.
"This money is being used to improve the home, rather than move somewhere slightly bigger and being hit with a hefty stamp duty bill."
