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Annual house price growth slowed in October, according to official data.
Figures from the Office for National Statistics released on Tuesday show that average house prices in the UK rose by 4.5 per cent in the year to October – down from 4.8 per cent in the year to September.
The average UK house price was £224,000 in October, £10,000 higher than a year earlier.
Prices in England went up by 4.7 per cent over the year, compared with 4.5 per cent in Wales, 2.8 per cent in Scotland and 6 per cent Northern Ireland.
The East Midlands enjoyed the strongest rate of growth with prices rising by 7.0 per cent over the year to £185,000.
This was followed by the South-west at 6.7 per cent and the East of England at 6.1 per cent. The lowest annual growth was in London, where prices increased by 2.1 per cent over the year, followed by the North-east at 2.4 per cent.
“The limited supply of housing in the UK is continuing to push up house prices, particularly outside London. While this is good news for current homeowners, it’s less so for first-time buyers struggling to save for a deposit,” said Ishaan Malhi, chief executive of online mortgage broker Trussle.
“House prices are now estimated to be more than seven times the average annual salary, which is a huge sum of money for those looking to get onto the property ladder,” he added.
The latest data from the Bank of England shows that mortgage approvals for house purchases slowed for a third month running to hit a 13-month low of 64,575 in October.
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Meanwhile, figures from the Royal Institution of Chartered Surveyors show that buyer enquiries in October fell for the seventh month running.
Howard Archer, chief economic adviser at EY ITEM Club, said there was unlikely to be a significant upturn in housing market activity any time soon.
“Housing market activity is being pressurised by weakened consumer purchasing power and substantial consumer wariness over engaging in major transactions. Potential house-buyers may also be concerned by the Bank of England hiking interest rates early in November,” he added.
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