The average cost of a new home decreased slightly in October, according to new figures released.

The average cost of a new home decreased slightly in October, according to new figures released.

New homes cost an average of £255,327 last month, 0.2 per cent less than the average cost in September and a 2.4 per cent decrease on October 2004, according to SmartNewHomes.com.

The decreases were most felt in the West and East Midlands, the north, north-west and Yorkshire and Humberside.

"It has been a difficult year for the UK housing market, reflected in new home price inflation and activity," said David Bexon, managing director of the website.

"Although the market is certainly out of the woods and the likelihood of a crash recedes significantly every month, it is still in a delicate state with buyers acting cautiously, slowing down activity across the board."

New home prices in the capital remained the highest despite having fallen last month, while the only areas to see a rise were Scotland, Wales and East Anglia.