October stagnation cuts house price rises further
However, significant regional variations show London holding back the rest of the country, according to the Your Move House Price Index.
This is the slowest growth since March 2012, and at £298,438 prices are now roughly level with November 2016, the estate agent said.
Transactions were also slower, down 5% in the first nine months of 2017 compared to the same period last year, however it noted this was justified, due to the surge last March ahead of the 3% surcharge in Stamp Duty.
Excluding the capital, and the South East (growing, but slower than average), growth for England and Wales was at 2.8%.
That was supported by a fairly consistent picture across much of the rest of the country, with house prices rising above 3% everywhere else other than in Wales and the North East.
Your Move and Reeds Rains managing director Oliver Blake said: “It’s a challenging time for the market, but outside London many regions are showing some resilience,” he said.
“We have yet to see how this will change in the months to come, particularly following the Autumn Budget when it has been rumoured the chancellor will make announcements that may impact the housing market.
“The good news, however, is that housing is clearly on the political agenda and any action that supports buyers and sellers – and positive movement in the market – has to be encouraged,” he added.
Data for the regions is one month behind the annual figure, however it shows London prices fell by 2.4% in the capital over the year to September, the only region to see a fall in annual house price.
This trend continued in September with a month-on-month fall (down 0.3%) and London was joined by three other regions, the East of England (down 0.3%), East Midlands (down 0.2%) and the North East (down 0.1%).