UK average house prices increased by 9.5% over the year to September 2022, down from 13.1% in August 2022, according to the Office for National Statistics (ONS).

The official body said that the annual percentage change slowed this month because UK house prices rose sharply in September 2021, which coincided with changes to Stamp Duty Land Tax.

UK house prices remained unchanged between August and September 2022; this also caused the annual percentage change to slow.

The average UK house price was £295,000 in September 2022, which is £26,000 higher than this time last year, and unchanged since August 2022.

Average house prices increased over the year to £314,000 (9.6%) in England, to £224,000 in Wales (12.9%), to £192,000 in Scotland (7.3%) and to £176,000 in Northern Ireland (10.7%).

Jeremy Leaf, north London estate agent and a former RICS residential chairman, said: “This most comprehensive of all the housing market surveys, though a little dated, confirms what we are seeing at the sharp end. Prices continue to be supported by lack of stock as buyers seek to take advantage of competitive mortgage rates before fallout from the mini-Budget pushed them higher.

“However, worries about further rises in inflation and potential implications arising from the Autumn Statement are contributing to a reduction in new business.”

Mark Harris, chief executive of mortgage broker SPF Private Clients, added: “The uptick in inflation to 11.1% will do nothing to calm borrower concerns about rising interest rates. However, while Base Rate is expected to continue rising, the longer-term picture has changed and the peak is unlikely to be as high as recently feared. Gilt yields have fallen, thereby allowing some cheaper mortgage products to be released into the market, which is encouraging for hard-pressed borrowers.

“We expect fixed-rate mortgages to come down in price further as the cost of funds falls, servicing pressure subsides and lenders attempt to originate new business.”