You are here: Home - Mortgages - First Time Buyer - News -

London house prices dropped 1.2% in October

Written by:
UK house price growth faltered in October, increasing by just 0.1% on the previous month, while prices in the capital fell by 1.2%.

The latest Land Registry House Price Index showed that house price inflation reached 6.9% in the year to October, down from 7% in the 12 months to September, delivering an asking price of £217,000 for the average home.

While prices were up annually in London by 7.7%, the Land Registry recorded a fall of 1.2% between September and October. Despite the fall, the cost of the average property in London is still the highest in the UK, setting buyers back an average of £474,000.

The picture of price growth was bleakest in the North East where house prices plummeted by 2.4% from September to October and grew by just 0.8% annually to reach an average price of £118,802.

Russell Quirk, founder and CEO of, said with Christmas just around the corner, concerns about falling house prices should “be taken with a pinch of salt”.

“Not only will buyer demand drop right off as thoughts turn to the stress of the festive season, but many sellers will also freeze the marketing of their property, ready to hit the ground running again in January,” he said.

Across the UK, the main contribution to rising house prices came from England, where inflation increased annually by 7.4% to reach £233,000. Meanwhile, house prices in Wales increased by 4.4% over the last 12 months to stand at £147,000. Scotland was just behind as the average price rose by 4% annually to total £143,000, while prices in Northern Ireland increased by 5.4%, totalling £124,093.

Richard Snook, senior economist at PwC, added: “While the annual inflation rate remains high, prices have barely moved over the last three months. If this trend continues into 2017, we will see a pronounced drop in growth rates in the New Year. We project that UK house price growth for 2017 could range between 2% and 5%.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

ISAs: your back-to-basics guide for 2018/19

Here’s everything you need to know to make the most of your unused ISA allowance ahead of the 5 April deadli...

A guide to Sharia savings accounts

A number of Sharia savings products have upped their game in recent months, beating more familiar competitors ...

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

  • RT @YourMoneyUK: Government plans cut to minimum shared ownership stake
  • RT @WeareJust_PR: “Families tend not to talk about money and death. But if we don’t talk about these themes it becomes very hard to make pr…
  • RT @RoyalLondon: Voluntary NI contributions to state pensions have risen - @stevewebb1 hails this as “great news that the message is gettin…

Read previous post:
Savings misery: less than a third of accounts beat or match inflation

Less than a third of savings accounts on the market can beat or match inflation, according to analysis.