Hometrack’s September National Housing Survey has revealed zero house price growth this month – the first time house prices have not increased for 19 months. The market has been cooling since May, but growth has now completely stalled.

Continued weakness in demand is behind the loss of momentum in price growth (demand fell by 2.1% this month), but also comes from a reduction in pent-up demand, which previously drove the market and was compounded by the launch of Help to Buy in early 2013. The balance between supply and demand has moved into negative territory in the last three months, further reducing upward pressure on prices.

Commenting on the trends, 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 momentum 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. Buyer uncertainty is growing in the face of a possible interest rate rise, a general election on the horizon and recent warnings of a house price bubble.”