Despite acceleration of British house prices in October, fuelled by the shortage of new houses on the market, this month has seen a 1.3% fall on prices, bringing the average house price down to £292,572.

This dip in prices is not expected to last, with Rightmove director Miles Shipside stating;

“New-to-the-market sellers have dropped their asking prices at this time of year for the last eight years, with an average drop of 1.9 per cent over the last five years.”

“Those looking to market their property as Christmas gets closer often have a greater sense of urgency to find a buyer and sensibly recognise that trimming their asking price will provide an incentive to potential buyers more focused on seasonal Christmas trimmings.”

Whilst house prices are set to increase in 2016, a reuters poll of analysts have predicted they will rise more slowly than rates in 2015.

Matthew Pointon from Capital Economics has said;

“An acute shortage of homes for sale, coupled with a recovery in housing demand as the labour market continues to strengthen, is putting upwards pressure on house prices. However, with interest rates set to rise gradually from next year, and house prices already at very high levels, gains in 2016 and 2017 will be far more modest.”