Annual house price inflation in England and Wales weakened to 4.4% in October, its slowest level in more than a year, according to the latest Hometrack report.

The report confirms general acceptance that the house market is cooling down with Hometrack saying that a combination of higher interest rates and weaker confidence had impacted on the market.

House prices fell by 0.1 percent in October, the first monthly decline in two years, following September’s flat results – however, these monthly figures do not account for seasonal factors.

The number of potential homebuyers registering with agents also fell by 6.4 percent on the month, the largest fall in buyers since Hometrack began their records in 2001.

The number of sales agreed fell 4.8 percent in October, while the time taking to sell a property grew with the average time spent on the market rising to 7.4 weeks from 6.9 weeks in the September survey, the longest since February 2006.

Hometrack also suggested that one of the growth areas of house prices – London – is also showing signs of cooling off, recording the biggest price falls in October of between 0.3 and 0.5 percent.

Hometrack’s Director of Research Richard Donnell said sales were set to weaken further in the coming months, despite a lack of supply providing support to prices.

“A further decline in sales volumes is inevitable over the months ahead as buyers, the majority of whom do not need to move, wait until the outlook for the market and interest rates become clearer,” he said.