UK house prices increased by 10.0% in the year to November 2014, down from 10.4% in the year to October 2014, the Office for National Statistics (ONS) has reported.

House price annual inflation was 10.4% in England, 3.1% in Wales, 4.4% in Scotland and 11.7% in Northern Ireland.

House prices continue to increase strongly across the majority of the UK, with prices in London again showing the highest growth.

Annual house price increases in England were driven by an annual increase in London of 15.3% and to a lesser extent increases in the East (11.9%) and the South East (10.8%).

Excluding London and the South East, UK house prices increased by 7.1% in the 12 months to November 2014.
On a seasonally adjusted basis, average house prices increased by 0.2% between October and November 2014.

In November 2014, prices paid by first-time buyers were 11.0% higher on average than in November 2013. For owner-occupiers (existing owners), prices increased by 9.5% for the same period.

Stephen Smith, director for the mortgage club and housing at Legal & General, said: “While house price growth in the UK has begun to slow in the past few months, it is important not to lose sight of the long term trends. Prices in the UK grew by 10.0% in the year to November, with prices in London and the South East inflating hugely. Shortages of viable homes remain a problem across the country but particularly in areas, such as London.

“As a result this constriction in supply has increased demand and with its prices. With that in mind, it is important for the government to strengthen its support for the recent building initiatives we have seen to alleviate the pressure.

“Although challenging, maintaining the momentum of house building is crucial to creating a sustainable market that is accessible to first time buyers and offers current homeowners more mobility. Recent changes to stamp duty regulation will also encourage flexibility by removing a serious financial obstacle for many.

“Ahead of the upcoming election, it is good to see these issues occupying a prime spot on the political agenda and the hope is that they continue to do so as without change, the UK housing market becomes more skewed and ultimately unsustainable.”