UK house prices fell by 0.6% in October, pushing the average property price down to £296,285, according to the latest Lloyd’s House Price Index.
The figures show that prices fell from £298,167 in September, while the annual rate of decline reached 1.2%, the largest year-on-year decline since October 2023.
Andrew Assam, director of mortgages at Lloyd’s, said the economic backdrop was testing demand for housing, with conflict in the Middle East driving inflation higher and keeping borrowing costs high.
“UK house prices fell by 0.6% in October, a larger fall 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,” he said.
“Demand for housing is currently being tested against a difficult economic backdrop. Renewed inflationary pressures, driven in part by conflict in the Middle East, are keeping borrowing costs high and increasing pressure on household finances, understandably making some buyers more cautious.”
The picture across the UK remains mixed, with Northern Ireland continuing to record the strongest annual growth in house prices.
Prices there rose by 4.4% over the year to an average of £228,708, although this represented a significant slowdown on the 6.9% annual growth recorded in September.
Scotland also continued its strong performance, with prices rising by 2.8% to an average of £222,667.
Wales recorded annual growth of 1.6%, taking the value of a typical property to £233,116.
In England, only three regions recorded positive annual growth. The North West saw prices rise by 2.2% to £249,916, while the North East recorded a 2% increase to £184,318.
The only other English region to see prices rise was the West Midlands, with annual growth of 0.3% taking the average property value to £261,656.
However, southern England continued to face downward pressure, with Greater London recording its largest annual decline.
Prices in the capital fell by 3.1% over the year to an average of £524,892. The South East and South West both recorded declines of 2.4%, with average prices of £379,258 and £298,057 respectively.
Lloyd’s findings on falling house prices mirror those of the Office for National Statistics, Nationwide, Zoopla and others.
