There is growing uncertainty over the market's future direction

Nationally, house prices rose at an annual rate of 12.6% in October, weaker than 13.8% the previous month; the average price of a home was �180,444.

Of England, Wales, Scotland and Northern Ireland, only the latter saw a rise in annual inflation.

Analysts believe five interest rate rises since November 2003 have taken the heat out of the housing market.

The monthly rise may provide comfort to people concerned about the prospect of the UK housing market spiralling downwards.

Prices in London staged a slight recovery, with annual house price rises up to 7% from 6.6% in September.

Last month's figures showed a drop in prices of 0.1% between August and September.

ABOUT ODPM'S SURVEY: Unlike Land Registry surveys, the ODPM's analysis is based on lending information and not actual housing transactions It therefore does not include cash sales, which account for about a quarter of all purchases

Some forecasters have predicted a period of yo-yoing growth as the market finds its feet after years of booming price rises, although others are predicting more dramatic falls.

Bigger homes

ODPM said demand was strongest for detached properties, where prices rose 1% month-on-month.

Out of the UK regions, only Northern Ireland experienced a rise in the annual inflation - which inched up from 13.3% in September to 13.4% in October.

More than 100,000 families are homeless, mostly in temporary housing

Annual inflation in England fell from 12.9% to 11.9%, and in Wales from 25.5% to 23.2%.

In Scotland, the price fall was more tangible, down from 21.9% to 17.8% over the same period.

The ODPM said the annual rate of house price inflation was highest in the North East at 23%.

Prices also remained robust in the North West, along with Yorkshire and the Humber.

London is still the most expensive place to buy a home, with an average home costing �265,324.

In contrast, the North East of England remained the cheapest location, with a typical home costing only �126,732.