UK house prices drop should be welcomed

In a city, where living below the staircases, with space of just a man to lie down costs £ 500 per month, a marginal house prices there should be welcomed broadly rather than seeing it as signs of slowdown. I hope you are able to guess which city are being referred - London.

• However Halifax doesn't measure just property prices in London, it's a broad measure of UK real estate, price of which according to the latest report dropped by -0.9% in September from August but it is still up 2% for the quarter ending September and 8.6% for last 12 months to September.

• Price rises are still high, considering wage growth, which has just started picking up rising at 3%.

Data points despite drop in prices, demand is quite stable.

• UK home sales rose by 3% between July and August. Sales in three months to August were 6.5% higher than preceding three months.
• Mortgage approvals has risen for three consecutive month and to highest level since January 2014.

However September's price drop can only be temporary as supply has fallen to record low for third consecutive month.