House prices rose slightly in October, but recorded a year-on-year drop for the seventh month in a row, official figures have shown.

The typical UK house sold for £205,974, the Department for Communities and Local Government (CLG) said, as prices went up by 0.6% over the month but decreased by 0.4% over the year.

The figures, released as the Royal Institution of Chartered Surveyors (RICS), said demand for property in the UK rose during November, with an increase in new buyer inquiries for the third month in a row, the first time the market has enjoyed such an extended period of demand growth since spring 2010.

There were further encouraging signs as the number of newly agreed sales rose at a faster rate than the previous month and the average number of sales per surveyor increased to its highest level since September 2010.

But RICS warned that economic uncertainty continued to hold the market back from any meaningful recovery, while the lack of mortgage finance and fears of further house price falls also acted as a drag. While analysts reacting to the CLG's October figures also warned that prices will soften in the coming months as consumer confidence remains low.