Average house prices increased by 10.2% in the year to October, the third month of double-digit growth, however, this was down from 12.3% in September.
According to the latest figures from the HM Land Registry UK House Price Index report, the average house price now stands at £268,000, some £24,000 higher than the same period last year.
However, it was down on the record level of £271,000 the month before as people rushed to close deals before the end of the stamp duty holiday in September.
Prices increased by 9.8% in England overall, while Wales saw a 15.5% rise and Scotland and Northern Ireland climbed 11.3% and 10.7% respectively. Northern Ireland remained the cheapest UK country to purchase a property in, with the average house price at £159,000.
On a regional level, London was the area with the lowest annual growth, at 6.2% while the East Midlands was the region with the highest, at 11.7%.
However, despite being the region with the lowest annual growth, average house prices in the capital were still the most expensive of any region in the UK at an average of £516,000 in October 2021.
Iain McKenzie, CEO of The Guild of Property Professionals, said: “Although we’re nearing the end of the year, it’s important to remember that this data is from the time when the stamp duty holiday had just ended.
“House prices eased across the UK as the rush to snap up property subsided, although this was only a gentle softening compared to the strong growth we’ve seen over the past year.
“Wales has seen the value of property rocket, with the nation reporting 15.5% growth in house prices, compared to 6.2% in London. The capital has seen inflated prices long before the pandemic though, so it’s worth bearing this in mind.
“With today’s inflation figures higher than expected, we could see interest rates start to rise in the coming months, potentially encouraging buyers to act sooner rather than later.”
Lawrence Bowles, director of research at Savills, added: “Annual house price growth slowed across most UK regions in October, according to the latest data from the ONS this morning. UK average prices rose 10.2% in the year to October 2021, down from 12.3% growth in the year to September.
“London and the East of England bucked the trend, however, with accelerating growth. House prices in London rose 6.2% in the year to October, compared to just 2.8% annual growth the previous month. While values in the East of England crept up to 11.2% from 10.8% the previous month.
“Acceleration of London prices reinforces the narrative that the appeal of city living is strongly linked to the easing of social distancing measures and the relaxation of international travel rules. It also aligns with the latest RICS survey results, in which London showed the greatest increase in new buyer enquiries in November.
“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. The latest data from TwentyCi shows the number of homes listed for sale in November remained 8% below the 2017-19 average, while the number of sales agreed ran 16% higher than normal. With limited stock available to purchase and little sign of demand easing, we can expect to see a strong start to price growth in 2022.”
