The average UK house prices decreased by 1.2% in the 12 months to October 2023, according to latest figures from the ONS House Price Index.

This was down from a decrease of 0.6% in the 12 months to September 2023.

Average house prices over the 12 months to October 2023 decreased in England to £306,000 (negative 1.4%), decreased in Wales to £214,000 (negative 3.0%), but increased in Scotland to £191,000 (0.2%) and increased by 2.1% to £180,000.

The North East was the only English region which saw an increase in average house prices in the 12 months to October 2023 (0.2%), while London saw the largest fall (negative 3.6%).

The HPI data show that average UK house price annual inflation was negative 1.2% in the 12 months to October 2023. This was down from the revised estimate of negative 0.6% in the 12 months to September 2023.

UK house price annual inflation has been generally slowing since July 2022, when annual inflation was 13.8%. The provisional estimate for the average UK house price was £288,000 in October 2023, which is £3,000 lower than 12 months ago.

The coronavirus (COVID-19) pandemic affected the supply of housing transactions for a period of time. And that the processing of new build properties has been particularly affected.

Legal & General Mortgage Services managing director Kevin Roberts said: “UK house prices have ended the year on a stronger footing and the outlook for pricing is much more optimistic now compared to this time last year where doomsayers were predicting a drop of around 10%. In reality, the fall has been around half that, or less in some regional cities like Bristol, where roughly two-thirds of properties on the market in certain postcodes are currently under offer. House prices are very closely linked to interest rates, which have settled considerably as the year has gone on, dropping for twenty weeks on the bounce.”