The annual rise in UK house prices is slowing according to figures released in October, however prices still went up much faster than the general cost of living.

UK property prices increased by 10.4% annually in October, down from 12.1% the previous month meaning the average home in the UK was valued at £271,000, this comes on the day that the office for national statistics reported that inflation had dropped to just 1% in November  which is the lowest level for 12 years.

Annual house price rises were fastest in England at 10.8%, followed by 5.7% in Wales, 4.9% in Scotland and 4.9% in Northern Ireland, the largest increases were in London, which saw prices rise year-on-year by 17.2% although there are indications from the main high street lenders, that price rises have slowdown in the UK housing market in recent months.

First time buyers have seen the biggest rise in property prices and are now paying about 12% more for their property on average in October compared with a year earlier, this has been caused by a shortage of available property however the recent changes in stamp duty, has reduced the costs of home purchase and should encourage more sellers to the market which in turn should give buyers a better choice and reduce the rise in prices.