UK house prices posted a rise of 0.2% in October, although the house prices survey from Hometrack affirmed the demand from new buyers in beginning to slow.

Analysis elucidates the growth of the house price by 0.2% in October, bringing the year-on-year change in house prices to -4.2 per cent; furthermore, observing the slowdown in the rate of growth in the degree of new buyers registering with agents.

"This suggests that the pent up demand that has boosted the market in recent months is starting to fade in the face of firmer pricing and fewer clear bargains", said Richard Donnell, director of research.

The survey suggest that sellers are now receiving an average of 92.9% of the asking price, upbeat from 92.4% in September and 92.1% in August, though the increase is projected to step back to same stage in the coming months, besides a modest change in coming year.

"Prices have firmed and the discount between sales and asking prices is back to the same level it was at the start of the credit crunch over two years ago", said Richard Donnell.

Glancing through the survey, prices in London rose 0.4%, bringing the quarterly change up to 1.1%, although, the survey alleged that the larger gains aroused in just 16% of the market, conversely, a modest modification in many other regions.

In addition, the sustained augment in house prices has probably contributed in the British Retail Consortium study on the rise in consumer confidence to the highest level in 18 months in October.