Chesterton's meta-index, which is based on the main monthly house price indices, has revealed that the monthly rate of house price growth slowed to 0.3 per cent in October, from 0.6 per cent the previous month.
The annual rate of growth dropped to 8.3 per cent (down from its high of 10.6 per cent in July), leaving the average house price at £197, 616.
Despite an overall slowdown, the discrepancy between property prices in the top 20 per cent versus the bottom 20 per cent of the market continued to increase.
The top end experienced growth of 14.5 per cent, while the bottom end grew by just six per cent.
Regional Results
There were only two regions that experienced monthly price falls, with the usually powerhouse London market recording falls of -0.1 per cent.
But Yorkshire and the Humber had the most significant decline at -0.6 per cent, which left the region's annual growth rate at just 3.9 per cent.
Monthly growth was still strong in Scotland (1.9 per cent) and Northern Ireland (1.8 per cent).
Every region experienced a drop in the rate of annual appreciation with the exception of Scotland (19.4 per cent) and the North West (7.1 per cent).
But Northern Ireland's still maintained growth head and shoulders above everywhere else at 43.9 per cent.
Supply Will Support Growth
Chesterton attributes much of the slowdown to monetary tightening, interest rate rises and the credit crunch, but concede that it's difficult to determine just how significantly these will impact upon the future of the market.
They also believe that HIPs (Home Information Packs) are likely to reduce supply in the long term and thus support price growth.
The September rollout of HIPs for three-bedroom properties prompted a flurry of these properties to the market ahead of the deadline.
Chesteron links this with the 0.4 per cent price increase in detached properties that occurred at the same time, the smallest rise across all property types.
While HIPs may have boosted supply temporarily, once the market readjusts, the underlying supply shortage should once again help to sustain house prices, they argue.
Regional Figures
source: Chesterton/cebr
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