THE average UK house price was £3000 lower in October than a record high reached the previous month, according to official figures.
The typical property value in October was £268,000, down from a peak of £271,000 in September, the Office for National Statistics (ONS) said.
The stamp duty holiday in England and Northern Ireland, which had sparked a rush of buyers, ended from October.
Despite the fall, the average house price was still £24,000 higher than a year earlier. House prices increased by 10.2% over the year to October, slowing down from 12.3% growth in September. Average house prices in Wales increased over the year to a record level of £203,000 (15.5% annual growth), in England to £285,000 (9.8%), in Scotland to £181,000 (11.3%) and in Northern Ireland to £159,000 (10.7%).
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ONS head of economic statistics Sam Beckett said: “Following last month’s record level of house prices, annual house price inflation slowed in October, with annual growth rates in England, Wales and Scotland all lower than in September.”
Average prices in the East Midlands increased by 11.7% in the year to October.
House prices in London increased by 6.2% annually. Despite having the lowest annual growth, London’s average house prices remain the most expensive of any region in the UK at an average of £516,000 in October.
The North East of England continues to have the lowest average house price at £148,000, the ONS said. The findings were released as a separate report from the ONS showed the rate of Consumer Prices Index (CPI) inflation rose to 5.1% in November – the highest level since September 2011.
Jamie Durham, economist at PwC, said: “Higher inflation may impact consumer confidence, and limit their willingness to make major financial decisions like buying a house.”
Karen Noye, mortgage expert at wealth managers Quilter, said: “The next MPC (Bank of England Monetary Policy Committee) interest rate decision is set to be announced tomorrow. With the uncertainty surrounding the Omicron variant, we are perhaps less likely to see a rise in interest rates just yet.”
Mark Harris, chief executive of mortgage broker SPF Private Clients, said: “With inflation soaring to a 10-year high, the pressure on the Bank to raise rates has notched up another level.”
Lawrence Bowles of Savills, said: “We expect UK house price growth to continue easing through the tail end of the year, as the market slows in the run-up to Christmas.”
Nicky Stevenson of Fine and Country, said: “Though transaction levels have eased off following the giant spikes witnessed in the summer, new listings have failed to keep up with demand.”
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