House price growth slows in October

The value of residential properties in the UK continued to increase in October, according to government figures published today (December 10th).

However, while the monthly figures from the Department of Communities and Local Government (DCLG) show a 0.1 per cent month-on-month increase in prices, the value of certain types of property fell.

The average price of a terraced house dropped by 0.4 per cent in October and the cost of a flat fell by 0.7 per cent, with those changes offset by a 0.8 per cent increase in the price of semi-detached homes.

Despite showing an increase in house price inflation, from 10.8 per cent in September to 11.3 per cent, a property expert claimed that the overall figures were further proof of a market slowdown and tighter mortgage lending practices.

"The DCLG data do not significantly undermine the belief that housing market activity and prices are now cooling markedly in the face of tighter lending practices and stretched affordability pressures," said Howard Archer at Global Insight.

Figures published recently by the British Banker's Association revealed that net mortgage lending fell in October, dropping to £5 billion from £5.9 billion the previous month.

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