The average house price in the UK has dropped “sharply” according to figures released today - but South Hams prices remain “static”.

Halifax’s House Price Index for October 2022, which demonstrates the rise and fall in house prices across the country, reports that house prices fell by 0.4 per cent in October - the biggest drop since February 2021.

This means that the average house price in the UK is now £292,598, compared to £293,664 in September 2022, which is the lowest it has been in five months.

This equates to an annual rate of growth of 8.3 per cent, down from 9.8 per cent.

The figures represent the third house price drop in the past four months, following a period of house price inflation post-pandemic.

However, estate agents in the South Hams have reassured sellers that the area’s market is holding steady.

Julie Hill, of The Coastal House, commented: “Despite recent reports that UK house prices have dropped for the 3rd time in the last four months we have found that over the past month, prices in the South Hams have been static.

“Property prices in the South Hams rose strongly by 12.7 per cent over the past year, adding £45,700 to the typical home, according to Zoopla’s September 2022 House Price Index.

“The area is well ahead of the UK average where prices have risen by 8.1 per cent since September 2021.

“The typical South Hams home is now worth £406,500, comfortably above the UK average house price of £259,100.

“But looking back over the last five years, the average property value has grown by 9.4 per cent, so you always need to look at the bigger picture."

Explaining the figures, Kim Kinnaird, director of Halifax Mortgages, said: “Though the recent period of rapid house price inflation may now be at an end, it’s important to keep this in context, with average property prices rising more than £22,000 in the past 12 months, and by almost £60,000 (+25.7 per cent) over the last three years, which is significant.

“While a post-pandemic slowdown was expected, there’s no doubt the housing market received a significant shock as a result of the mini-budget which saw a sudden acceleration in mortgage rate increases.

“While it is likely that those rates have peaked for now – following the reversal of previously announced fiscal measures – it appears that recent events have encouraged those with existing mortgages to look at their options, and some would-be homebuyers to take a pause.

“Understandably we have also seen consumer caution grow, as industry data shows mortgage approvals and demand for borrowing declining.

“The rising cost of living coupled with already stretched mortgage affordability is expected to continue to weigh on activity levels. With tax rises and spending cuts expected in the Autumn Statement, economic headwinds point to a much slower period for house prices.”