Average UK house prices increased by 12.6% over the year to October 2022, up from 9.9% in September 2022, according to the Office for National Statistics.

The average UK house price was £296,000 in October 2022, which is £33,000 higher than this time last year, although little changed from last month.

The figures were skewed by a sharp fall in house prices a year ago, in October 2021, following changes to Stamp Duty Land Tax.

Andy Sommerville, director at Search Acumen, a property data and insight provider, explained: “October’s figures show an increase in house price growth annually, but this is largely because the data compares against October 2021, when house prices uncharacteristically fell, against the overall growth trend at the time, because the pandemic Stamp Duty holiday came to an end.

“After accounting for this slight statistical anomaly, it is clear that we have now entered a period of house price decline.”

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Home nations

Average house prices increased over the year to £316,000 (13.2%) in England, £224,000 in Wales (11.8%), to £195,000 in Scotland (8.5%) and to £176,000 in Northern Ireland (10.7%).

Iain McKenzie, CEO of The Guild of Property Professionals, said: “The jury is out on what next year brings for house prices. It is expected that we will see prices recalibrate, but it should be put in the context of unprecedented rises in recent years.

“Getting the cost-of-living crisis under control is paramount to restoring confidence in buying, as nobody wants to commit to a mortgage without first knowing if they can afford the repayments. With inflation slightly easing today, we have to hope that this will be the start of a determined effort to get living costs under control.”

Jack Roberts, CEO of home moving platform SlothMove, added: “House prices have flatlined and it won’t take long for them to start their not-so-merry slide downward. When they do fall, the economic headwinds will see it will go far beyond a simple adjustment.

“We’re already witnessing asking prices being slashed across the country, and these will increase as committed sellers realise swallowing their pride and offering reductions is the only sensible course of action.”