Residential property price inflation across the UK is continuing to slow, the latest figures from the Office for National Statistics (ONS) show.
Home prices rose by 6.9% in the year to October, down from 7% in September, taking the average price of a property in the UK to £217,000, according to the index, which includes data from the Land Registry and Registers of Scotland.
Areas close to London saw the fastest price increases, despite the significant slowdown in the City of London where property prices fell sharpest, along with Aberdeen.
Stephen Wilson, managing director of Stirling Ackroyd, said: “House prices in London are beginning to cool as we head into winter, with stamp duty continuing to freeze up the top end of the market while those lower down the chain are feeling the chill from our frosty relationship with Europe.
“The Capital’s house values have slowed to the pace of the rest of England, as demand for homes in commuter towns in the East and South East are pushing up property prices in these regions.”
In terms of house price rises, Basildon has seen the greatest growth of 19.9% over the past 12 months, 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.
“The results shows a slight monthly downturn in house prices, with the most acute changes in London, and in particular prime property, which can in part be attributed to the changes in stamp duty rates,” said Richard Sexton, director of e.surv.
“Annually, however, prices have continued to rise, with strong growth in areas such as the East of England and the South East, pricing many buyers out of the market completely,” he added.
With historically low interest rates and less competition from investors in many areas, the conditions are there “to bag yourself a fantastic deal”, according to Paul Smith, CEO of haart estate agents.
Smith’s advice is for property investors “to act now”.
“Families should take the time over Christmas to explore their options, and get buying in the New Year,” he said.