- Average house prices rose by 3.4% to £292,000, in the 12 months to October
The price of the typical home increased by around £10,000 in the year to October, according to the latest figures from the Office for National Statistics.
The average UK home is now selling for an estimated £292,000 – which is an increase of 3.4 per cent on the same time last year when the average property was selling for £282,000.
While house prices have been edging upwards for most of the year, they have fallen £1,000 since August and prices fell in four out of the nine English regions compared to September.
The north east, the west midlands, and the south east all recorded price falls between September and October, according to the ONS.
In London, the average property fell £7,000 between September and October with prices now down £11,000 in two months.
The average property in the capital cost £520,000 in October, according to the ONS, down from £531,000 in August.
London falling: Prices in the capital have slid £11,000 on average over the past two months
Jonathan Hopper, chief executive of estate agent Garrington Property Finders said: ‘On an annual basis, every part of the UK saw average prices rise in October. But dig deeper into today’s official data and the momentum looks less assured.
‘While there is no shortage of buyers, those planning a move are increasingly pragmatic and price-sensitive.
‘This sense of caution is likely to heighten following November’s sharp increase in consumer inflation – which is eating into people’s disposable income and could delay next year’s long hoped-for reduction in interest rates.
‘As a result we’re seeing some buyers reassessing what they can afford. The glut of homes for sale means they’re often spoilt for choice, and this is giving them the confidence and leverage they need to negotiate hard on price.’
Why are house prices up over the last year?
The general upward trend over the last 12 months is thought to have been driven by falling mortgage rates in recent months – but concerns about higher inflation and rates rising again could curb future growth, according to experts.
The ONS figures run on a delay compared to other house price indexes, but are considered more accurate because they are based on completed sales.
In September, mortgage rates fell to lows not seen since before the Liz Truss mini-Budget in late 2022 which sent markets reeling.
The lowest five-year fix reached 3.68 per cent while the lowest two-year fix fell to 3.82 per cent – though these averages have risen again since October and are now back above 4 per cent.
Where did house prices go up most this year?
That said, the rate of house price growth varies across the country.
London has seen the least house price growth of 0.2 per cent, while Scotland has seen average values climb by 5.1 per cent.
Northern Ireland has seen prices even more, up 6.2 per cent over the year, according to the latest data from the ONS.
In England, it’s the north that has seen prices increase the most.
The North East and Yorkshire and The Humber have seen average prices increase 4.7 and 4.6 per cent respectively year-on-year.
In contrast the south east has seen prices grow by only 1.7 per cent year-on-year while the south west has below average growth of 2.7 per cent.
