The average property price was £296,285, which represented an annual decline of 1.2%. This was the largest recorded fall since October 2023.
Northern Ireland recorded the strongest annual house price growth across the UK, at 4.4%, although this marked a slowdown from 6.9% the previous month. The average property value in the region reached £228,708.
In Scotland, house prices rose by 2.8% over the year to an average of £222,667, while annual growth in Wales edged up to 1.6%, taking the average property value to £233,116.
Commenting on the overall decline, Andrew Asaam, mortgages director at Lloyds, reiterated the impact of global inflationary and economic pressures.
However, he added that October’s house price fall was not entirely surprising.
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“House prices have changed relatively little over the past couple of years, as the market has gradually adjusted to higher interest rates. The recent rise in energy and other household costs has added to the pressure on buyers, so some adjustment in prices is not surprising,” he said.
Asaam expected market conditions to remain subdued in the near term but said he did not anticipate a prolonged period of falling house prices.
Only three regions record growth in England
In England, three regions recorded annual growth, with the North West recording an increase of 2.2%, which took the average property price to £249,916. The North East saw prices rise by 2% to £184,318.
The West Midlands was the third English region to see positive, albeit more modest, annual growth, at 0.3%, with an average property value of £261,656.
Greater London recorded the greatest annual decline of 3.1% year-on-year to £524,892. This was followed by the South East and South West, both down by 2.4% to £379,258 and £298,057 respectively.
Jonathan Hopper, CEO of Garrington Property Finders, said falling prices in Southern England were weighing on the wider UK market: “Southern England is in sharp correction territory now. Prices there are sliding so far, and so fast, that they’ve dragged the national average into the red too.
“While uncertainty in the run-up to the Budget made October a particularly slow month, the latest Lloyds data can’t be dismissed as a blip. It shows that average prices across the UK have fallen on a quarterly basis for six months in a row, and that the annual pace of decline accelerated by a factor of 12 between September and October.”
Tanya Elmaz, director of sales at Together, said the consecutive fall in house prices reported by Lloyds highlighted the “distinct lack of momentum” in the property market.
“Normally, autumn is a period of increased buying activity in the property market, but this year’s economic conditions are acting as a serious deterrent to borrowing. High mortgage rates are beginning to bite, and speculation on the Autumn Budget will also have stopped buyers from moving forward with their plans,” she said.
