UK house prices fell slightly in September for the first time in more than a decade, as rising rental prices continued to pressure renters. Average house prices in the UK fell 0.1% to £291,385 in the year to September as high interest rates began to weigh on the market, according to the latest data from the Office for National Statistics (ONS). This was down from £292,882 in August and was the first annual fall in house prices since April 2012, ONS data shows. Average house prices in the UK fell by 0.5% in the last 12 months to £310,000, data showed. In Wales, it fell by 2.7% to £215,000, while in Scotland it rose by 2.5% to £195,000. In Northern Ireland, house prices rose by 2.1% to £180,000 in the third quarter (July-September). In the year to September 2023, the North East had the highest annual rate of change of any English region, at 1.6%, while the South West had the lowest, with an increase of 1.6%. Jake Finney, an economist at PwC said: "This is primarily due to the effects of monetary policy tightening on mortgage rates and economic activity more broadly. "While we do not anticipate any rate rises soon, the impact has not fully been felt yet by homeowners. Around one in three mortgaged households have still to see their mortgage rates change since the Bank of England started hiking rates in late 2021. "Our analysis indicates that the average household coming off a fixed term mortgage could see their annual repayments increase by around £3,000." It came as the private rental prices paid by tenants in Britain rose by 6.1% in the 12 months to October. This compared to 5.7% in the year to September 2023, and was the highest rate since the ONS started calculating the data in January 2016. The ONS said annual private rental prices increased by 6.0% in England, 6.9% in Wales, and 6.2% in Scotland in the period. Within England, London had the highest annual percentage change in private rental prices in the 12 months to October at 6.8%, while the North East saw the lowest at 4.7%. London’s annual percentage change in private rental prices was at its highest annual rate since the London data series began in January 2006. "Our initial estimate of UK house prices show they fell very slightly in the year to September," Aimee North, head of housing market indices at the ONS, said. "The steepest annual falls were in Wales and southern England, while prices continued to grow over the year in Scotland and many areas of northern England and the Midlands. "Meanwhile the rise in rental prices continues to accelerate across the country, with Wales, London and Scotland seeing the biggest annual increases."