House prices in London fell in October, dragging the growth in average property prices nationwide to its lowest level since July 2013. The slump in the capital, which began after the Brexit vote in 2016 and reached a fall of 1.7% for the year to October 2018, pulled down the average increase across the UK to 2.7%, down from 3% in September, according to official data from the Office for National Statistics (ONS).

A slowdown in growth across the south-east and the east of England also put the brakes on national price rises, leaving the average cost of a home in England at £248,000. The decline in property price inflation was mirrored on the high street after annual inflation figures showed the consumer prices index (CPI) for November continues to fall, down to 2.3% from 2.4% in October.

Discounted clothing, footwear, food and furniture accounted for much of the fall while the rising cost of transport and private education pushed up the index. However, the ONS said its preferred measure of inflation, which includes the cost of housing services and council tax, remained unchanged at 2.2%.

Analysts said slowing inflation and property prices, combined with the uncertainty about the government’s Brexit plans, means that the Bank of England will suppress its urge to raise interest rates at a meeting on Thursday (20th December) and wait until at least the middle of next year.

While the average house price in England grew by 2.7% in October, they rose in Wales by 3.8% over the previous 12 months to reach £161,000. In Scotland the average price rose by 4.4% to stand at £152,000. The average house price in Northern Ireland stands at £135,000, an increase of 4.8% over the year.