Home.co.uk
Home.co.uk

News: House price inflation continues retreat

House prices have continued to retreat - latest data from the ODPM (Office of the Deputy Prime Minister) showing UK annual house price inflation in June at 5.0%, down from 6.0% in May. However, annual inflation in London hit 1.8% in June, up from 1.6% in May. The UK annual house price inflation rate for the 3 months to June 2005 was 6.0% and 2.0% in London.

Meanwhile, the mix-adjusted average house price in the UK in June stood at £184,152, up from £182,651 in May (not seasonally adjusted). The rise in UK prices between May and June can be attributed to rises in prices in all dwelling types. In particular, prices rose for terraced houses by 1.1%, for bungalows by 1.6% and for other dwelling types by less than 1%.

In the home countries, England and Wales saw a fall in annual inflation in June, while Scotland and Northern Ireland both saw a rise. The inflation rate in England fell from 5.3% to 4.0%, while in Wales it eased from 13.8% to 10.8%. Over the same period, in Scotland the rate rose from 11.8% to 14.1%; and in Northern Ireland from 9.3% to 14.3%.

House price inflation in all regions of England fell except in London where it rose from 1.6% to 1.8%. The highest inflation rates were in the north in North West (9.9%), North East (8.8%) and Yorkshire and the Humber (8.4%). Inflation rates in the East and West Midlands were 5.9% and 5.5% respectively.

Inflation was below 4% in the East, South West, and London and lowest in the South East, where it fell from 3.1% in May to 1.7% in June - due to a rise in prices between May and June this year of 0.5% compared with a rise of 1.9% in the same period last year.

Mix-adjusted average house prices in May were £193,165 in England, £144,886 in Wales, £127,286 in Scotland and £126,795 in Northern Ireland.

The English region with the highest average house price in March remained London at £268,498. The lowest average price was in the North East at £132,684. Only the East, London, South East and the South West had average prices above the UK average.

For first time buyers the UK house price inflation rate fell from 7.7% in May to 6.7% in June. This was due to a small rise of 0.1% in prices between May and June in the properties compared with a larger rise of 1.1% seen over the same period last year.

Elsewhere, the inflation rate for former owner occupiers fell from 5.4% to 4.4%. This was due to a rise of 1.1% in prices between May and June in the properties bought by former owner occupiers, compared with a larger rise of 2.1% over the same period last year.

The average price paid by first time buyers across the whole of the UK was £150,356 in June, while the average price paid by former owner occupiers was £199,450.

Back to: News Index