House prices fell by 0.1% in October which is the first price fall for two years, according to Hometrack.

The small decline in October follows two months of zero growth with the annual rate of growth falling back to 4.4%. Average prices were down across all regions except for the West Midlands, where values remain unchanged.

Richard Donnell, Hometrack’s director of research, said: “The fall in prices in October is not unexpected. Prices were bound to be affected after several months of weaker buyer confidence, falling levels of demand and declining sales volumes. We expect further small price falls in the months ahead but these are likely to remain limited as there remains no evidence of any increase in the supply of homes for sale. If anything, the current uncertainty appears to be resulting in a decline in the numbers of homes coming to the market which is likely to support underlying prices in the coming months.”