October saw annual house price inflation hit 10.8% in England, 5.7% in Wales, 4.9% in Scotland and 4.9% in Northern Ireland.
London and the South East continued to lead the way and with their results excluded prices increased by a much more reasonable 6.7%.
Mark Harris, chief executive of mortgage broker SPF Private Clients, said: “With UK house prices rising 10.4% over the 12 months to October, there is still momentum in the market although it is definitely slowing.
“London continues to drive house price increases with a 17.2% rise.
“Worryingly, first-time buyers are paying 12% more, on average, than they were a year ago.
“While it has become easier and cheaper to access higher loan-to-value mortgages, there shouldn't be a risk of buyers over stretching themselves with the tougher requirements introduced as a result of the mortgage market review.
“However, there comes a point when the numbers don't add up so the fact that price growth is slowing is to be welcomed.”
Looking forward into next year Harris said competition could continue to drive mortgage rates down.
He added: “Swap rates have edged up a little in recent days but competitiveness among lenders will determine a lot of mortgage pricing next year.
“If lenders want to drum up business, they will compete on rate and there will continue to be some excellent deals for borrowers to choose from. Fixes, in particular, look tremendous value at the moment.2
