The average UK house price came down in November to £295,000 from a record high of £296,000 in October.
Property prices increased by 10.3% in the year to November 2022, slowing from 12.4% in October 2022, the Office for National Statistics (ONS) said.
The increase over the 12 months period to November was £28,000, according to the ONS.
Average house prices vary across the regions. In England the average to November was £315,000 (a 10.9% annual increase) , in Wales £220,000 (10.7%), Scotland £191,000 (5.5%) and in Northern Ireland it rose to £176,000 (10.7%).
“While London remains the slowest growing English region, Scotland’s annual growth was slower than London. The North West showed the highest annual growth in the year to November 2022,” ONS head of Housing Market Indices, Aimee North, said.
“UK private rental prices continue to surge, reaching record highs for the eighth consecutive month as England and Wales experienced the highest annual growth since records began. London’s annual rental price inflation continues to increase, with annual growth rising faster than any other English region,” she added.
London's average house prices remain the most expensive of any region in the UK, with an average price of £542,000 in November 2022.
The North West was the region with the highest annual house price inflation in November 2022. Average prices in the North West increased by 13.5% in the year to November.
By contrast, the North East continued to have the lowest average house price of all English regions, at £163,000.
Jean Jameson, chief sales officer at Foxtons: “2022 began as a fast-paced sellers’ market, and London saw some of its highest levels of exchange volumes since 2017. As buyers rushed to meet the Help to Buy deadline, Foxtons New Homes saw their best start to the year since 2019. Although buyers became more cautious towards the end of the year amid mounting political and economic pressure, we saw many press on with their purchases.
“In fact, our more suburban markets, particularly in South and South West London, had some of their strongest results since 2015.
The mortgage market is recovering, with best buy rates down significantly from their mini Budget spikes, and the housing market is predicted to cool somewhat in the new year. This should allow prices to begin to stabilise in some areas and provide new opportunities to invest.”
Interest rates have been falling in recent months after a turbulent year which saw almost all rates below 5% disappear from the market.
The UK government's disastrous mini-budget in September brought havoc on the financial markets, with more than 40% of all mortgage products pulled overnight after then-chancellor Kwasi Kwarteng's mini-budget triggered a slump in the pound and fears of further interest rate hikes.
More than 1.4 million households in the UK are still facing the prospect of interest rate rises when they renew their fixed rate mortgages in 2023, the Office for National Statistics (ONS) previously warned.
Managing director of House Buyer Bureau, Chris Hodgkinson, said: “The current cost of living crisis and the increased cost of borrowing, in particular, have somewhat dampened the enthusiasm of the nation’s homebuyers in recent months and we’re now starting to see this translate to a slight reduction in house prices.
"However, the property market landscape is a fragmented one and while many homeowners will have avoided a dip in the value of their property, there are plenty of areas where house prices have started to slide to a far greater extent.
"While it’s generally expected that the market will remain resolute this year, sellers in areas where the market is coming off the boil are well advised to sell quickly in order to achieve the best price for their home.”