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House prices in East Midlands rise fastest – as London fares worst

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House prices increased by more than £7,000 on average over the 12 months to October, however, values fell month-on-month and house sales fell by 12%, official data today showed.

The typical house price in Britain stood at £223,807 in October, up 4.5% from the same month last year, according to the Office for National Statistics.

Over the past 12 months, the East Midlands has seen the fastest growth, with values jumping by 7% to an average £184,544.

The slowest annual growth has been in London, where prices increased by 2.1% – and fell 0.9% on a monthly basis –  to sit at an average £481,102 in October.

Across the country, home values slipped by 0.5% from September to October, falling across all regions except the East Midlands, East England and the South West, the data showed.

The fastest monthly fall in prices was seen in the North West, as values tumbled 2% to an average £154,056 – on an annual basis they are up by 3.9%.

The most up to date sales figures today showed that the amount of completed house sales fell by 12% in August from the same month in 2016.

Brexit outcome to affect 2018 house prices

Mark Harris, chief executive of mortgage broker SPF Private Clients, said: “Despite the uncertainty created by the Brexit negotiations, many people have got on with buying and selling property regardless.

“Borrowers have also been able to benefit from some of the cheapest fixed-rate mortgages ever seen, and as we move into 2018, we expect to see more of the same, even though inflation has risen to 3.1%.

“Much will depend on how the Brexit negotiations proceed – if we make decent progress then the next interest rate movement is likely to be upwards but not until 2019.

“If, however, we walk away from a deal for whatever reason then a reduction in interest rates may even be a possibility, particularly if the UK slips back into a mild recession.

“Either way, interest rates are not likely to go very far anytime soon,” he added.

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