In the 12 months to October 2012 UK house prices rose by 1.5%, down from a 1.7% increase in the 12 months to September, according to Office for National Statistics’ House Price Index for October 2012.
House prices continue to remain relatively stable across most of the UK, although prices in London are increasing and prices in Northern Ireland are falling.
The year-on-year increase reflected growth of 1.8% in England and 2.8% in Wales, which were offset by a decline of 2.2% in Scotland and 11.7% in Northern Ireland.
Annual house price increases in England were driven by a 3.4% rise in London and a 3.1% increase in Yorkshire and The Humber.
Excluding London and the South East, UK house prices increased by 0.8% in the 12 months to October 2012.
On a seasonally adjusted basis, UK house prices increased by 0.2% between September and October.
In October 2012, prices paid by first-time buyers were 1.8% higher on average than in October 2011. For owner-occupiers (existing owners) prices increased by 1.3% for the same period.
Mark Harris, chief executive of mortgage broker SPF Private Clients, said: “The mortgage market is still constrained but is showing signs of easing, which will have a positive effect on the housing market. The Funding for Lending scheme continues to progress but it is a slow burner and no overnight solution for the woes of the market.
“More lenders are likely to start reducing their rates in the New Year as these funds filter through. However, it will be a while before first-time buyers benefit as lenders are likely to continue to saturate the 60% LTV market with rock-bottom deals a while longer, before turning their attention to higher LTVs.
“The problem first-time buyers will have is that while rates may come down, criteria are likely to remain tight so meeting these could be the issue.”