Figures released by the Halifax show prices are up 6.9% annually but ONS data suggest this is slowing.
For the ninth consecutive month an increased demand for properties has seen house prices rise by 0.7% in October and 6.9% for the year.
The average price for a home stands at £171,991 according to the Halifax.
Data making up the Halifax Index is based on their own approved mortgages although prices and sales remain below levels seen in 2007 at the height of the market.
House price rise slowing
The house prices in the last three months were 1.6% higher than the previous quarter but still lower than the 2% growth of earlier quarters.
According to the Office of National Statistics (ONS) has said house prices have dropped this month.
Falling house prices is good news for first time buyers allowing them to have a smaller deposit or lower earnings to buy their first home.
Last month their house price index reached the highest level since records began of 186 before falling to 184.9 in October.
For the year throughout the UK house prices were higher by 3.8% in September.
Across the country increases differ with England where house prices were up by 4.2%, Wales up by 1.4% and falls for Scotland lower by 1.1% and Northern Ireland lower by 1.5%.
For home movers the gap between their current home and the next increases which means they need a larger mortgage.
Increased buyer interest
Martin Ellis of the Halifax has said there has been a rise in demand from homebuyers including first time buyers, home movers and buy-to-let landlords, resulting in an increase in house market activity.
For older homeowners there is higher activity with equity release buyers accessing wealth in their property using a lifetime mortgage to help maintain their standard of living as costs rise or pay university fees for grandchildren.
The fall in prices may be due to a larger supply of sellers returning to the market, such as home movers, increasing the availability of properties. However, the UK average house price remains significantly below the August 2007 peak.
Even so property sales in 2013 have remained 36% below levels reached in 2006.
Prices in London and the South-East have been particularly strong and rising quickly whereas outside the M25 there are many areas where prices are falling.
One advantage of rising house prices for homeowners in London is remortgage buyers can now release capital for home improvements such as a new kitchen, bathroom or adding an extension.
What are your next steps?
Talk to our London City Mortgage brokers for advice if you remortgage your existing home and want the best mortgage deal or release capital, buying your first home, moving home or are a buy-to-let investor.
For older homeowners releasing equity from your property, our LCM mortgage advisers can recommend the lifetime mortgage, accessing wealth to repay an interest only mortgage, maintain your lifestyle or even buy a more expensive home.
Learn more by using the equity release calculator, mortgage cost calculators, and property value tracker chart. Start with a free mortgage quote or call us and we can take your details.
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