House prices fell by -0.6% in October, following a -0.1% decrease in September and the average property price is now £296,285, compared to £298,167 in September. On an annual basis house prices are -1.2% lower, the biggest fall since October 2023 with Northern Ireland continues to lead UK annual growth, though pace has slowed.
Northern Ireland continues to lead the UK, with annual house price growth at +4.4%, with the rate slowing considerably from +6.9% last month. The average property value is now £228,708.
Scotland continues to post solid growth, with prices up +2.8% over the past year to an average of £222,667. Growth has also strengthened slightly in Wales, rising to +1.6%, with the typical property now valued at £233,116.
In England, three regions recorded annual growth with the North West recording an increase of +2.2%, taking the average property price to £249,916, while the North East saw prices rise +2.0% to £184,318.
The West Midlands was the only other English region to see positive annual growth, at +0.3%, with an average property value of £261,656.
House prices remain under pressure across much of southern England, with Greater London recording the largest annual decline, down -3.1% year-on-year to £524,892, closely followed by the South East and South West, both down -2.4% to £379,258 and £298,057 respectively.
Andrew Asaam, Mortgages Director at Lloyds, said:
“UK house prices fell by -0.6% in October, a larger drop than in recent months, taking the average property price down to £296,285. Prices were also -1.2% lower than a year ago, the biggest annual fall since October 2023.
“Housing demand is currently being tested by a challenging economic backdrop. Renewed inflationary pressures, driven in part by the conflict in the Middle East, are keeping borrowing costs high and adding to the squeeze on household finances, making some buyers understandably more cautious.
“However, it’s important to put October’s fall in context. House prices have changed relatively little over the past couple of years, as the market has gradually adjusted to higher interest rates. The recent rise in energy and other household costs has added to the pressure on buyers, so some adjustment in prices is not surprising.
“Looking ahead, conditions are likely to remain subdued in the near term, but we don’t expect this to lead to a sustained period of falling house prices. With wages continuing to rise faster than property prices, the gap between earnings and house prices should gradually narrow, helping affordability to improve over time.”
