House prices have fallen again in October, with the average house price in the UK now standing at £362,777, the e.surv house price index (HPI) has found.

The HPI has revealed that house prices in the UK have dropped -4.1% annually, with annual prices dropping -4.8% when excluding London and the South East.

Monthly changes in house prices have also seen a further decline of -0.4% and have continually dropped since November 2022. The only month in this period that didn’t see a fall in house prices was July, when prices did not change.

Wales and the East of England were the regions which have seen the furthest drop in annual house prices, falling by -4.8%. Average house prices in the regions now stand at £237,020 and £392,616 respectively.

Director at e.surv, Richard Sexton, said: “Our data this month shows that on an annual basis, the average sale price of completed home transactions using cash or mortgages in England and Wales in October 2023 fell by some £15,700, or -4.1%, and now stands at £362,777.

“However, notwithstanding this decrease we see from cash and mortgaged sales data, we can safely say the continued lack of supply will continue to support prices from any seismic fall. There are also significant regional differences within the headline data. The North East reports the smallest fall in prices over the last twelve months, at -1.5%, relegating Yorkshire and the Humber to second place.

London remained the region with the highest average house price, currently standing at £696,439. The Greater London region has recorded a -2.1% and -0.2% change in annual and monthly house prices.

Although house prices in the capital have fallen, six boroughs have seen prices rises over the previous 12 months, including the City of London, which has seen increases of 23.5%, the City of Westminster at 13.6% and Richmond upon Thames at 5%.

Other boroughs that have witnessed house price increases over the past year are Havering (5%), Haringey (3.3%) and Hillingdon (0.2%).

Sexton added: “Despite the current dip in property prices, the market is supported by a robust labour market and improving affordability. Furthermore, the upcoming Autumn Statement could support sales volumes and pricing in the coming months if the government introduces supportive measures for both ends of the market, such as stamp duty relief for downsizers and assistance for first-time homebuyers. As such, we eagerly await the Autumn statement to see if it will include specific measures to support the market.”

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