During October, average house prices across the UK stood at £268,349 after a slight dip of 1.1% against the previous month.
On a regional level, Scotland saw house prices increase by 11.3% in the year to October 2021, England saw house prices increase by 9.8% during the same period, and Northern Ireland saw house prices increase by 10.7% over the year to Quarter 3 (July to September) 2021.
However, house price growth was strongest in Wales where prices increased by 15.5% in the year to October 2021.
Jeremy Leaf, north London estate agent and a former RICS residential chairman, says: "Although a little historic, this most comprehensive of all the housing surveys still shows quite clearly a market in transition. After recovering from the frenzy of the summer and early autumn, we are seeing a ’new normal’ at the coalface, reduced but still determined demand along with an expectation of improvement in supply if recent market appraisal requests are anything to go by.
"It is no surprise that property prices have dropped a little and will continue to do so, probably until early 2022. Looking forward, more balance will be welcome, otherwise, lack of choice will compromise transaction numbers, if not prices, more significantly."
Anna Clare Harper, chief executive of property consultancy SPI Capital, says: "The slight slowdown on September’s growth rate reflects the impact of the end of the temporary stamp duty reduction, which acted as a ‘discount’ for aspiring property buyers.
"Ongoing strong growth, despite Covid’s negative impacts on our economy and lifestyle and the end of the temporary stamp duty reduction, reflects a shortage of supply and the relative affordability of mortgage finance thanks to low-interest rates and competition among lenders.
"Growth was led by detached properties, which increased in price by 14 per cent in the year to October, compared with 6.6 per cent for flats. This makes sense from a demand perspective: lockdowns and working from home have emphasised the need for space and comfort.
"The biggest problem the housing market faces going forward is the shortage of available stock, in particular houses, which means that prices are likely to remain strong. The supply shortage is unlikely to reverse any time soon due to higher costs of materials and labour, a backlog of planning applications and a growing burden of rules and regulations for property developers to contend with."
