House prices increased at the slowest pace in seven months in October according to the data released by the Office for National Statistics (ONS).  October’s average house price increased by only 0.1% from September to £271,000. That was the slowest growth since the 0.4% increase recorded in March.

Brian Murphy, head of lending at Mortgage Advice Bureau, said, “House prices have experienced a slight slowdown in recent months, with seasonal variations as well as tighter mortgage regulation reining in property prices. However, average prices are still well up on last year, with the UK as a whole experiencing double-digit growth.”

London has again experienced growth levels that have helped to contribute to the overall average total.  London’s house prices increased by 17.2% in twelve months to October.  However, it was less than the increase of 18.8% recorded for the twelve months to September. The average house price for London was £504,000, still the highest of any region in England. 

If excluding London and the south-east from the UK total then the average house price in twelve months to October grew by 6.7%.

First time buyers averaged a purchased house price of £208,000 in October.  This is a 12% increase over the year to October and again is lower than the year to September’s recording of 13.3%.

First time buyers will be aided with a new scheme next year which will be called the Starter Home programme.  Buyers under the age of 40 will be offered at least a 20% discount on a new build.  An estimated 100,000 properties will be offered at the discount.

Home movers paid an average cost of £312,000.

Mortgage deals and remortgages are still available at low interest rates from lenders as the lack of demand for lending has led to a more competitive market.