House price growth has fallen for the third month in a row

 
Emma Haslett
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Temperatures Plummet Across The UK
Price growth dropped across the UK (Source: Getty)

House price growth in the UK dropped again in October, according to official figures, the third month in the row it has fallen.

Property prices rose 4.5 per cent in the year to October, down from 4.8 per cent in September and 5.1 per cent in August.

On a monthly basis, prices fell 0.5 per cent, to £223,807, the second monthly fall in a row.

London had the lowest annual growth of any region, with average prices edging up just 2.1 per cent in the year to October, and falling 0.9 per cent to £481,102 between September and October.

Meanwhile, house price growth reached seven per cent in the East Midlands, and 6.7 per cent in the South West.

Read more: Now a forecast says London house prices won't rise until 2020

Affordability ceiling

The figures underline data by the Royal Institution of Chartered Surveyors, which suggested the number of homes up for sale fell in October, indicating affordability has hit a ceiling.

Halifax's house price index, published last week, also showed price growth slipping, with year-on-year growth in asking prices dropping to 3.9 per cent, from 4.5 per cent in October.

Reaction to today's data was mixed.

“The limited supply of housing in the UK is continuing to push up house prices, particularly outside London," said Ishaan Malhi, chief executive of online mortgage broker Trussle.

"While this is good news for current homeowners, it’s less so for first-time buyers struggling to save for a deposit. House prices are now estimated to be over seven times the average annual salary, which is a huge sum of money for those looking to get onto the property ladder."

However, Russell Quirk, chief executive of online estate agent Emoov, suggested the dip was temporary.

"A marginal cool in monthly price growth and one that is almost certainly a minor seasonal frostbite rather than signs of a further market freeze.

"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."

Read more: These are the biggest risks to UK house prices

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