HOUSE price inflation in the North-East is higher than anywhere else in England, figures showed last night.

But elsewhere, fresh evidence of a slowdown in the housing market emerged when official figures showed price growth faltered in the rest of the UK in October.

The average price of a house in the UK in October stood at £180,444, up from £179,201 in September, according to figures from the Office of the Deputy Prime Minister (ODPM).

Although the figure represented a 12.6 per cent rise over the year, it was lower than the annual price inflation of 13.8 per cent recorded in September.

It is in line with the latest survey from lender Halifax, which showed that house prices fell by 0.4 per cent last month.

Halifax recently predicted prices would fall by two per cent next year, while other lenders have also reported a cooling in the market.

Unlike the Nationwide and Halifax house price indices, which are based on mortgage approvals, the ODPM figures are based on prices on completion.

Inflation in England dropped from 12.9 per cent in September to 11.9 per cent in October.

The highest inflation rates remain in the North-East, at 23 per cent.

Published: 14/12/2004