Average property values in the UK fell by 0.5% in October 2017 but are still 4.5% higher year on year at £223,807, according to the latest official figures.
A breakdown of the data from the Office for National Statistics shows that month on month prices were down by 0.6% in England but up 4.7% year on year to an average of £240,860.
Prices in Wales increased by 4.5% year on year to an average of £153,316 and increased by 0.8% month on month. In Scotland prices increased by 2.8% year on year but fell 0.7% month on month to £143,544.
The East Midlands recorded the biggest rise with prices up by 7% year on year, followed by a 6.3% annual rise in the South West while month on month the biggest rise was 0.2% in both the East Midlands and the South West of England.
London saw the lowest annual price rise, up by 2.1% while the North West saw the most significant monthly price fall of 2%. In London prices fell by 0.9% month on month to an average of £481,102 and it was the 11th month in a row where price growth in the capital has been below the UK average.
In Scotland the most expensive area to live in was Edinburgh where the cost of an average house was £248,000. In contrast, the cheapest area to purchase a property was Inverclyde, where an average house cost £95,000.
The month on month falls in much of the country in October were probably the beginning of the usual seasonal decline at the end of the year, according to Russell Quirk, chief executive of eMoov.
‘While there has been a fall in the number of fresh listings coming on to the market as many now wait until after Christmas before selling, the number of actual transactions has continued to increase at a healthy rate,’ he said.
‘This would suggest that it is business as usual for those already going through the process, but sellers are perhaps adjusting their expectations ever so slightly where price is concerned, in order to secure a sale this side of Christmas in tougher market conditions and to a tighter timeline,’ he added.
Graham Davidson, managing director of buy to let specialist Sequre Property Investment, believes that the overall increase of 4.5% year on year clearly demonstrates the stability of the UK market.
‘Buy to let investors are still benefiting from healthy capital growth and high yields, despite the numerous tax changes and new legislations introduced. This is something we feel will continue into 2018 as landlords prop up the rental sector due to the shortage of housing accommodation. Those who invest wisely can still benefit hugely from a buoyant market over the next 12 months,’ he said.