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House price inflation slows again, ONS says

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House price inflation across the UK is continuing to ease, according to the latest data from the Office for National Statistics (ONS).

Prices rose by 6.9% in the year to October, down from 7% in September.

The average price remains at £217,000, according to the index, which includes data from the Land Registry and Registers of Scotland.

Areas near London saw the fastest price rises, but the City of London and Aberdeen saw the biggest falls.

Basildon saw house prices rise by 19.9% over the past year, while in Slough they were up by 19.6%.

Prices fell by 8.8% in the City of London, by 8.7% in Aberdeen, and by 4.9% in Kensington and Chelsea.

UK regional house prices (year to October 2016)
Region Inflation Average price
England +7.4% £233,000
Wales +4.4% £147,000
Scotland +4% £143,000
Northern Ireland +5.4% £124,000

Howard Archer, chief European and UK economist at IHS Markit, said he expected house prices to slow further next year.

"We suspect that house prices will come under increasing pressure as 2017 progresses, and will likely be essentially flat over the year. Indeed, we would not rule out a marginal drop."

However, in July, shortly after the EU referendum vote, Mr Archer said that house prices could fall by up to 7% next year.


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