House prices continued to climb in October, but the rate of increase is notably slower than in August and September as the average price paid for a home in England and Wales in October rose to £375,275, Acadata data from e.surv reveals.
The annual growth rate in the average house price for England and Wales last month was 8.8%.
On an annual basis, it is 1.2% below the rate of 10% seen in September and 3.5% below the 12.3% recorded in August.
The monthly growth rate in the average house price in October was 0.8% – a decline of -0.2% from the rate seen in September and a -0.4% decline from August.
Meanwhile, the annual rates of price growth in all ten regions across England and Wales have reduced from the previous month.
In East England, price growth has slowed in the month by some 4.0% from 15.4% to 11.4%, and in East and West Midlands has diminished by 3.6% and 3.7% respectively.
The area with the smallest fall in its annual rate of growth is Greater London, where price changes reduced from 2.8% to 2.2%.
The South West has the highest growth rate for the fourth month in succession, at 15.2%, but that is down from 18.5% in the previous month.
Within the region, the unitary authority for Bournemouth, Christchurch and Poole has led the way, with annual price growth of 30.0%.
The West Midlands is in second place for the third month running, with the West Midlands (Birmingham) experiencing the highest annual price growth in the region at 16.5%, followed by Herefordshire in second place with growth of 16.2%.
By contrast, Greater London has an overall annual growth rate of just 2.2%, although 22 of the 33 London boroughs saw prices rise on an annual basis.
E.surv director Richard Sexton says: “Given the pressure on the UK housing market seen in recent weeks, it is testimony to the robust nature of this market that prices continued to climb in October – albeit the rate of increase is notably slower than in August and September.”
“Our index takes a considered look at all the transactions, both cash and mortgaged. When we do this, the average price paid for a home in England and Wales in October 2022 rose – by some £2,800 to £375,275 – from the average price paid in September.”
“If we step back and look at the performance of house prices since the start of the pandemic in March 2020, the average price paid for a home has increased by some £60,000 which contrasts with the increase in consumer price inflation of nearly 13% over the same period. Property prices have therefore risen in real terms.”
“We need to reflect on the fact that inflation and rising interest rates will impact the affordability of mortgage finance for many people, potentially affecting people’s ability to move home. Certainly, the rate of growth has slowed as the numbers in the report show.”
“However, we have almost full employment which is what really affects lenders’ appetite to lend. And now that financial markets have calmed, many lenders are back in the market with new mortgage products.”
“The budget on the 16 November may also impact buyer sentiment so while this trend of slowing growth appears well set, things, as we have seen, can change quickly.”
