UK house price growth slowed in October

Helen Cahill
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House prices in the east of England have been growing the fastest in the UK (Source: Getty)

House price growth slowed in October, with prices increasing 6.9 per cent in the year, down from seven per cent growth in September.

The UK average house price was £217,000 in October, up £14,000 annually, but unchanged from the previous month, according to the Office for National Statistics.

Read more: Bellway boosted by Help to Buy

House price rises in England continued to drive up the UK average, with a growth of 7.4 per cent in the year.

The average house price in England hit £233,000. However, the figure in London was more than double that, at £474,000.

Although the average house price in the east of England (£279,000) was relatively low compared to London's, growth in this region was the highest in the UK at 12.3 per cent. In London and the south east, house prices grew by 9.1 per cent and 7.7 per cent respectively in the year.

The lowest growth was in the north east, with prices increasing by 2.7 per cent over the year to October.

Jeremy Duncombe, director of Legal & General Mortgage Club, said: "Yet again house prices continued their upwards trajectory in October, as a horde of potential buyers flooded the market up and down the UK.

Read more: This is how far house prices have fallen in Chelsea this year

"Buyers are still struggling to get onto the property ladder, however, largely due to the chronic shortage of affordable homes. What we need is more schemes designed to stimulate supply, as opposed to policies that simply drive demand."

The government's Help to Buy scheme has been a key initiative pushing up demand. Bellway said today that it had been boosted by the loan scheme; Help to Buy was responsible for nearly 40 per cent of the housebuilder's sales over the last four months.

Housing charity Shelter has said that the government has been spending two thirds of its housing money on boosting demand through schemes such as the Lifetime Isa and Help to Buy. Only a third of its housing budget has been going towards building new homes.

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