Inflation levels in the housing market are starting to ease according to a new report. According to the official data from the Office for National Statistics (ONS) house price inflation declined to 6.9% in October from the 7% level recorded in September. The average house price is £217,000.

Again data showed the cooling off of the overheated housing market in the capital. London annual house prices declined by 8.8%. Decline in housing inflation were also seen in Aberdeen at 8.7%, Kensington 4.9%, and Chelsea 4.9%.  However, the outlying areas which offer convenient commutes into London saw significant increases including Basildon with 19.9% increase over the same time period in 2015. Slough also saw an increase with a jump of 19.6% in house inflation over last year.

As house prices were on a continued climb in London in the past years, homeowners found it to be a major opportunity and put their properties on the market and moved outside the capital to find their money bought them more in letting go of the convenience of living inside of London. The rising prices also shut many professionals out of the market and forced them to look to areas that offered easy commutes. There are also those that enjoyed the benefit of living close to London while experiencing a smaller community lifestyle in the outer areas. This has led to the cooling demand for London property.

The trend of declines in London property prices is expected to continue and experts believe it was an inevitable correcting to the strong growth seen in the area even throughout the recession.

Meanwhile, in other areas of the UK, continued low interest rates on both mortgages and remortgages is keeping demand strong in the lending market. That trend also is expected to be seen in the first part of next year as homeowners look to secure lower interest rates or fixed rate terms, and hopeful home buyers see the current lending market as perhaps a once in a lifetime opportunity.