House prices rose by just 0.7 per cent to £233,000 in the year to October, marking the lowest annual growth rate for seven years, according to the Office for National Statistics.
Month on month, prices dipped by 1.3 per cent from September, the figures show.
London saw the biggest annual drop, with prices falling 1.6 per cent to £472,000.
At a country level, Northern Ireland saw the strongest growth, with prices up by 4 per cent year on year to £140,000, followed by Wales which saw a 3.3 per cent rise to £166,000.
In Scotland prices rose by 1.4 per cent to £154,000 and in England they increased by 0.5 per cent to £249,000.
Of all the English regions, Yorkshire and the Humber saw the strongest growth with prices up by 3.2 per cent annually to £166,904.
Outside London, property in the North East performed the weakest, with prices down by 1.1 per cent year on year to £129,360.
Benham and Reeves director Marc von Grundherr says: “While the recent election result will have brought a degree of certainty to the market, it will take some time to reverse the negative house price trends of the last few years.
“While we should see an immediate boost in buyer and seller activity come January, it will take a few months before this filters through to the ground and house prices return to their usual buoyant rate of growth.
“Until that point, the market remains resolute and while we are unlikely to see any miracle turnaround this side of the New Year, we continue to see property values edge up despite the turbulence of Brexit and the wider political landscape.”
Trussle mortgage expert Dilpreet Bhagrath says: “These figures may signal the end of the general slowdown in UK house price growth.
“Last week’s emphatic election result means we’re likely to see more clarity over Brexit which, in turn, should help ease the economic uncertainty that has engulfed the UK housing market.
“It’s possible that would-be buyers who’ve been holding off from making their move could act soon now that they feel a sense of stability in the market.”
