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annual house price increase The decline across the UK reached 1.7 per cent in October, according to official figures, down from the 2.0 per cent recorded in September.
National Statistical Office (ONS) reported that the average price of a property nationwide last month was £270,000.
regionally, England Average prices climbed to £292,000, representing an annual increase of 1.4 per cent. There was a 1.5 per cent increase in Wales, taking it to an average of £211,000, while properties in Scotland averaged £192,000 after an annual increase of 3.3 per cent.
In Northern Ireland, average house prices are set to reach £193,000 in the third quarter of 2025, representing a significant annual increase of 7.1 per cent.
Within England, annual house price inflation was highest in the North East at 5.0% in October. it was the lowest LondonWhere the average house price fell by 2.4%. House prices in the South West also fell by an average of 1.3%.
Amy Reynolds, head of sales at London-based estate agency Antony Roberts, said: “In London, where affordability and sentiment are highly rate-sensitive, even small changes in expectations can have a big impact on activity.”
Sarah Coles, head of personal finance at Hargreaves Lansdown, said: “When house prices fall it hits people who are relying on equity in a home to supplement their retirement income. It also reduces the confidence of home owners, who feel less well-off, and may restrain spending as a result.
“Given how sluggish economic growth is right now, this could be even worse news for the economy. The only people who will be celebrating are those getting on the property ladder and first-time buyers.”
The figures were released as follows ons It said the consumer price index (CPI) inflation rate declined from 3.6% in October to 3.2% in November.
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This is the lowest CPI rate since March and a bigger slowdown in inflation than many economists had expected.
The Bank of England will announce its next base rate decision on Thursday.
mark harrisThe chief executive of mortgage broker SPF Private Clients said on Wednesday: “The prospect of another quarter point cut in the base rate at tomorrow’s meeting looks almost certain.
“Lenders have already provided borrowers with plenty of festive cheer by reducing their fixed rate mortgages in anticipation of further base rate cuts and there is a growing range of sub-4% products available to tempt them. We expect this trend to continue into the new year, which is encouraging news for those looking to move or remortgage.”
Ian Futcher, financial planner at wealth manager Quilter, said: “Today’s inflation data shows a significant decline from last month, and combined with last week’s disappointing GDP data, the Bank of England’s Monetary Policy Committee looks set to cut rates.
“This will be welcome news for buyers, strengthening confidence that mortgage rates will continue to fall gradually into the new year. Markets are already pricing in further cuts in 2026, which could bring more competitive deals to the market.”
David Hollingsworth, associate director at L&C Mortgage, said: “Inflation remains above the Bank of England’s target, but this should be enough to signal a more durable path of easing.
“Stubborn inflation has stalled the pace of rate cuts, but a rate cut in December now looks like a testament to the fact that it was unlikely to happen in the summer.
“I expect this competition to continue in the new year as lenders look to stay on track.”
Nick Leeming, chairman of estate agency Jackson-Stops, said: “As we enter the new year, it is important for sellers to continue to price competitively. This is an exacting market, with regional nuances and supply dynamics varying widely between postcodes, placing the onus on sellers to read it correctly.
“For buyers, it is likely that the Bank of England will reduce interest rates this week and promote competitive mortgage offers, providing some further leverage and incentive to make their move in January.
“This is the window buyers have been waiting for – choice, leverage and stability are finally back in their favor. In the first few weeks of December alone we have seen a sharp increase in offers and exchanges, with expectations for a continued increase in activity in the first quarter of the year.”
The ONS also said the average UK monthly private rent rose 4.4% year-on-year in November to £1,366. Annual growth slowed to 5.0% in the 12 months to October.
Nathan Emerson, chief executive of Propertymark, an organization of property professionals, said the “unhealthy imbalance between rental supply and demand” was contributing to rising rental prices.