House price falls accelerated this month - with the West Midlands seeing an above average drop -as demand fell back with consumers concerned about the economy.
The price of a typical home dropped by 0.2 per cent in October, compared with falls of 0.1 per cent over each of the previous five months, while average growth is down by 2.8 per cent on the previous year, according to property market analysts Hometrack.
Areas hit by above average falls over the month included the West Midlands, which experienced a 0.6 per cent drop, the East Midlands, with a 0.4 per cent fall, and the North East, which also experienced a 0.4 per cent tumble.
Demand for housing also fell by 0.2 per cent in October, the third consecutive month in a row, fuelled by concerns over the economy and household finances, the report found.
On the supply side, October saw a 1.3 per cent increase in the number of homes listed with agents, meaning supply has grown by 11 per cent over the last six months.
The report predicted that the balance between supply and demand points to an acceleration on price falls in the coming months.
Richard Donnell, director of research at Hometrack, said: “Growing consumer concern over the outlook for the economy is beginning to impact directly on house prices.”
Prices in London were described as “static” with Greater London recording an average overall price change of 0 per cent.
London had previously seen seven months of consistent rises - and Hometrack said London’s change in fortune was significant as previous rises had “flattered” the overall rate of growth.
October did see a 6.3 per cent rise in the number of sales agreed overall, Hometrack said, as sellers look to move before the end of the year.
Weaker demand means that the average time for a home to stay on the market is 9.8 weeks, having crept up over a period of three months, rising to 13 weeks in the East Midlands and 12.5 weeks in the North West.
The survey questions estate agents in England and Wales about achievable selling prices.