"There’s been a general cooling in transaction numbers and buyer appetite in the housing market, which means we’re still seeing huge differences in the price growth across different regions."
The data shows that after negligible growth in September seemed to confirm an entrenched slowdown, October house prices recorded their strongest month on month rise since Q1 2016.
Growth of 0.4% saw the average house price in England and Wales put on £1,045 in value to reach £294,351 - the strongest growth since the 3% stamp duty surcharge on was introduced in April.
On an annual basis, house prices are still showing some growth at 3.0%, similar to the 3.7% recorded in September. However transaction volumes continue to be subdued, with no rebound after the summer slowdown.
While annual increases in house prices have fallen in the majority of regions, all remain in positive territory.
Adrian Gill, director of Your Move and Reeds Rains estate agents, said: “There’s been a general cooling in transaction numbers and buyer appetite in the housing market, which means we’re still seeing huge differences in the price growth across different regions.
“What hasn’t changed is an underlying picture of strong demand and inadequate supply. More and more young adults are living with their parents, but there’s no sign they are less ambitious to get their own place. As the government looks again at housing, it will be a tall order to come up with something that meets the needs of people right across the country.”
Richard Sexton, director of e.surv chartered surveyors, added: “In some ways despite a slow down, the housing market, like the economy, has remained surprisingly resilient since the vote for Brexit. The variety of fortunes in different areas, however, shows the challenge the government faces as it prepares its Housing Policy White Paper, expected this month.
“Despite lower transactions, homeownership remains a key aspiration for most in the UK, and there’s no sign of a generalised, significant fall in prices that makes that easier to achieve.”
