UK house prices fell on a monthly basis for the first time in 15 months in October, according to Nationwide Building Society.
Property prices dropped 0.9% compared to September to £268,282.
This marks the first monthly drop since July 2021 and also the biggest decrease since June 2020.
On a yearly basis, annual house price growth slowed sharply from 9.5% in September to 7.2% in October.
Nationwide said the housing market looks set to slow in the months ahead.
It comes after decisions made by former Chancellor Kwasi Kwarteng in September's Mini-Budget - which have now largely been reversed - caused havoc by pushing mortgage rates up sharply.
Interest rates and inflation have been soaring higher as well, putting more pressure on household finances and making it more expensive to get a mortgage.
Inflation is at a 40-year-high of 10.1% and the Bank of England base rate is at 2.25%.
The Bank will meet this Thursday where analysts say they could hike interest rates to 3%.
Robert Gardner, Nationwide chief economist, said: "October saw a sharp slowdown in annual house price growth, to 7.2% from 9.5% in September.
"The market has undoubtedly been impacted by the turmoil following the Mini-Budget, which led to a sharp rise in market interest rates.
"Higher borrowing costs have added to stretched housing affordability at a time when household finances are already under pressure from high inflation."
Mr Gardner added: "The market looks set to slow in the coming quarters.
"Inflation will remain high for some time yet and (the base rate) is likely to rise further as the Bank of England seeks to ensure demand in the economy slows to relieve domestic price pressures.
"The outlook is extremely uncertain, and much will depend on how the broader economy performs, but a relatively soft landing is still possible.
"Longer term borrowing costs have fallen back in recent weeks and may moderate further if investor sentiment continues to recover.”
Nationwide isn't the only monthly house price index - which means it can be confusing to know exactly how prices are changing.
Latest figures from Land Registry data show the average UK house price was up 0.9% on a monthly basis to £295,903 in August.
The annual price change for a property in the UK was 13.6%.
The Rightmove house price index for October showed average prices were up 0.9% on a monthly basis, and 7.8% annually, to £371,158.
The Halifax Building Society house price index for September put the average price at £293,835 - down 0.1% monthly but still up 9.9% on the year.
