House prices moved up by 10.2% on an annual basis in October, show new figures from HM Land Registry.

This compares to a 12.3% increase seen in September.

On a monthly basis there was a slight softening too, with house prices ticking down by 1.1%.

This brings the average property price in the UK to £268,349, the figures report.

Wales saw the highest annual growth, recording a rise of 15.5%, followed by Scotland, at 11.3%.

In England, the East Midlands was the region with the most rapid annual climb in house prices, at 11.7%.

And London recorded the lowest level of annual growth, at 6.2% – although in September this read as 2.8%.

On a monthly basis, house prices dropped across 70% of UK regions, while London saw 1.9% growth.

“This signals what could become a bit of a changing of the guard as we head into 2022,” says James Pendleton property expert Lucy Pendleton. She explains: “London has trailed the wider country in terms of house price growth during Covid but is showing signs of a resurgence.

“This is being helped by the fact that it has become better value in relative terms with every month that has gone by where the rest of the country has eclipsed its gains.”

On the headline figure, Garrington Property Finders chief executive Jonathan Hopper comments: “It says a lot about the state of the housing market when the annual rate of price growth can cool sharply and still be in double figures.

“After the blistering pace of inflation seen in the 12 months to the end of September, October’s figure almost feels like a return to normal.

“Of course, there’s nothing normal, or sustainable, about average prices rising by over 10% a year. House prices are still rising at double the rate of consumer inflation, which is itself at a 10-year high.

“Still, the market is finally starting to settle after the frequently breakneck price growth recorded during the stamp duty holiday.

And rising inflation is a concern for many market watchers. Trussle head of mortgages Miles Robinson says: “While house price growth remains buoyant, it’s shaping up to be a difficult winter for household finances in general.

“Families are facing a steep rise in energy bills and an increase in the general cost of living. This squeeze in consumer spending will almost certainly impact people’s ability to save for deposits and ultimately move home. As such, we could well see house price growth begin to stall.”

SPF Private Clients chief executive Mark Harris: “With inflation soaring to a ten-year high, the pressure on the bank to raise rates has notched up another level.

“However, historically the Committee rarely makes its move move and raises rates in December, so the February meeting is a more likely option. This will also give the bank time to see what impact the Omicron variant is having on economic activity.”

Meanwhile, The Mortgage Lender chief executive Peter Beaumont focusses on the upcoming review of affordability stress tests. He says: “Proposals currently on the table to loosen rules concerning affordability checks to support first time-buyers may give the market a further injection of activity.

“While this seems like positive news for young people, a by-product could be further house price inflation. With the rate of growth already significant in the last year, this could in reality push homeownership further out of reach for those that it was designed to help.

“In the short term, the impending interest rate rise from the Bank of England, whether it happens tomorrow or in the next few months, may prompt many buyers to take the leap in the New Year.

“And for homeowners, re-mortgaging may creep up on the January to-do list in order to make the most of the favourable rates currently available.”