The average price of a new home fell in September by £2,886, down 1.1% since August. The annual fall of 0.1% is well below falls previously experienced at this time of year and is likely to be due to August’s interest rate rise. Despite this, the price buyers are willing to pay has continued to rise, suggesting that buyers are cautious but confident in the future. Activity is predicted to pick up in the final months of 2006.