Annual house price growth slipped to -1.2% in October, down from a revised -0.6% for the year to September, according to the latest UK House Price Index published by the Office for National Statistics (ONS).

The movement means the average UK house price stood at £288,000 in October, a level £3,000 lower than a year ago.

Over the 12 months to October, the average house price in England fell to £306,000 (-1.4%), and in Wales slipped to £214,000 (-3.0%). In Scotland, however, house prices increased slightly, to £191,000, reflecting growth of 0.2%.

In Northern Ireland, the ONS data revealed that average house prices increased by 2.1% to £180,000 in the year to Q3 2023.

The North East was the only English region which saw an increase in average house prices in the 12 months to October (0.2%), while London saw the largest fall, at -3.6%.

Managing director at Legal & General Mortgage Services, Kevin Roberts, said that UK house prices had ended the year on a “stronger footing”.

“The outlook for pricing is much more optimistic now compared to this time last year where doomsayers were predicting a drop of around 10%,” Roberts said.

“In reality, the fall has been around half that, or less in some regional cities like Bristol, where roughly two thirds of properties on the market in certain postcodes are currently under offer. House prices are very closely linked to interest rates, which have settled considerably as the year has gone on, dropping for 20 weeks on the bounce.

"Usually, we would see a quieter few weeks in the immediate run-up to Christmas, but buyers have pleasantly surprised us by remaining very active.”

Head of mortgages at Atom bank, Richard Harrison, added: “It’s important to remember that within this nationwide forecast there will obviously be regional differences, with some areas performing better than others, however the overall picture of a relatively flat market should entice more buyers early next year as they look to get ahead of any potential future increases.

“If you’re a buyer there is certainly reason to be positive, particularly given the competitive mortgage environment, with lenders continuing to cut rates, while improving criteria and service levels in order to win new business. This, alongside flatter pricing, should have a positive impact on buyer sentiment and as confidence improves, there’s a good chance that the market will exceed current expectations next year.”

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