Average UK house prices rose 9.5% in the year to September, according to the UK House Price Index, published by the Office for National Statistics (ONS).

This is down significantly from 13.1% in August 2022 and 15.2% in the year to July.

The ONS said house prices were static between August and September 2022 at £295,000.

But this is still £26,000 higher than a year earlier.

Start of the slowdown

However the slowdown has started and many experts predict a fall in property prices next year.

Helen Morrissey, senior pensions and retirement analyst at Hargreaves Lansdown, said: “After remaining buoyant for so long there are strong signs of gathering gloom over the UK housing market.

“The cost of living is starting to bite as people continue to tighten their belts in the face of rising costs. We can expect to see this continue over the coming months as the heady mix of rising interest rates and the prospect of a deep recession convince people to put off a house move until things look a bit better.

“This all adds to the tricky dilemma facing would-be house buyers – do they press on with their dream purchase or do they delay in the hope that prices drop?”

Jack Roberts, CEO of home moving platform SlothMove.com, added: “A dive in property prices is now inevitable, but it remains to be seen whether there’ll be some grace in the execution, rather than a painful belly flop.

“That may well be wishful thinking. Record-breaking inflation, exceeding even some of the gloomiest predictions, will not be righted quickly and the autumn statement is unlikely to jolt house buyers into action any time soon.

“First-time buyers are likely to put their feet up in the months to come and wait as falling prices bring the bottom rung of the property ladder back into reach. This is what could make a steeper correction a self-fulfilling prophecy. The housing market may deliver its own Black Friday by the spring.”