However, on a seasonally adjusted basis, average house prices increased by 0.1% between September and October 2014, compared to an increase of 1.7% in average prices during the same period a year earlier. Annually, price growth is down 1.7% from an increase of 12.1% in the year to September 2014.
House prices have continued to fall from the record levels witnessed in August 2014, as London house prices cool. The price index for London is 1.9% below the levels seen in August.
Excluding London and the South East, UK house prices increased by 6.7% in the 12 months to October 2014.
In October 2014, prices paid by first-time buyers were 12.0% higher on average than in October 2013, but dropped from an increase of 13.3% in September 2014.
For existing owners, prices increased by 9.7% for the same period.
Alex Gosling, managing director of online estate agents Housesimple.co.uk commented:
"Price rises in London are moving from from the berserk to the breathless.
"Homes in the capital are now appreciating at 17.2% a year - which is positively modest compared to the dizzying 19.6% levels recorded by the ONS in August.
"The cooling of London's overheated market is inevitably playing a large part in the slowing of national price rises. With UK average prices now rising at an annualised rate of 10.4%, September's figure of 12.1% is starting to look like a blip.
"The market is likely to cool further in the run up to Christmas as many househunters put their search on hold. But the impact of the Chancellor's surprise stamp duty announcement at the start of the month should ensure there is no substantial loss of momentum.
"The most expensive homes have become liable for higher tax, while many in the more modest price brackets have seen their stamp duty cut. The likely result is an uptick in demand - and prices - in all but the prime markets.
"Demand is well spread across the regions now, with buyers putting in more sensible offers. As always, the best properties are still achieving decent prices while overpriced properties struggle to sell.
"The market is pausing for breath, and even though mortgage lending criteria are as tight as ever, the Chancellor's stamp duty surprise could get prices off to a strong start in 2015."
