Average house prices in the UK rose by 5.1% in the year to November 2017, down from 5.4% in the year to October 2017, the November ONS House Price Index showed.
In England house prices increased by 5.3% over the year to November 2017 and Wales saw house prices rise by 4.5% over the last 12 months.
In Scotland, the average price rose by 3.6% and in Northern Ireland it increased by 6.0%.
Jeremy Duncombe, director, Legal & General Housing Partnerships said: “The first interest rate rise in a decade has evidently had only a limited impact on annual price growth, with prices continuing to rise in November.
“Though some potential buyers might have been deterred by the base rate rise, for most borrowers the Bank of England’s decision meant only a modest increase of £25 a month for the average borrower.
“However, there remains the potential for another base rate rise in the future. Hopeful buyers and existing homeowners coming to end their mortgage deals would be prudent to begin searching for a new deal now, well before a potential rise is factored in by the market.”
In Great Britain, the average price in November for first-time buyers was £191,376, up 0.6% from the month before and 5.5% year-on-year.
Craig McKinlay, sales and marketing director at Kensington Mortgages, said: “House prices are now rising at more sustainable levels across the UK than in recent years, with some areas such as London even seeing a price correction.
“However many first-time buyers continue to face the affordability challenge of getting onto the housing ladder.
“Rapid increases in the price of property over the past few years mean many hopeful buyers must still play catch-up, while an ongoing lack of housing supply continues to impact the market.
McKinlay added: “The good news is that there is help on hand for those worried about this affordability challenge.
“Not only does the government’s recent announcement of a stamp duty exemption on properties for the first £300,000 make positive reading for first-time buyers, but increased lender support for government schemes like Help to Buy also increases the options for younger buyers with their eye on the ladder.”
The UK Property Transaction Statistics for November 2017 showed that the number of seasonally adjusted transactions on residential properties has increased by 7.1% in the year to November 2017.
Between October 2017 and November 2017, transactions increased by 0.6%.
Ishaan Malhi, chief executive and founder of online mortgage broker Trussle, said: “Those looking to get onto the property ladder should see the current slowdown in price growth as an opportunity to buy. With interest rates still extremely low and the recent changes to stamp duty, first-time buyers are arguably facing better conditions than they have for some time.
“However, affordability is going to be an issue for many. Wage growth has failed to keep pace with inflation, so saving for a deposit is going to be that bit harder.
“Nevertheless, with many parts of the UK now seeing house price growth begin to level off, what was once an almost impossible task is getting a little easier, and this trend should continue over the coming months.”