House prices fall £3k in two months: Average UK house price dips as the housing market continues to cool

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Homeowners have seen £3,000 wiped off the value of properties in just two months as the housing market continues to cool.

The average UK house price has fallen from £274,000 in August to £271,000 in October, according to the Office for National Statistics.

In London, the average home has fallen in value by £10,000, from £514,000 to £504,000, although prices are still up by 17 per cent compared with October 2013. 

Cooling: House prices fell from £274,000 in August to £271,000 in October according to the latest ONS report 

For those hoping to get on the property ladder the picture has brightened slightly, with the average first home costing £208,000, down from £210,000 in August.

Brian Murphy, of the Mortgage Advice Bureau, said London prices may have hit an affordability ceiling and growth should slow while wages catch up. 

He added: ‘First-time buyers in particular will now be able to breathe a sigh of relief.’

First time buyers: For those hoping to get on the property ladder the picture has brightened slightly