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News: Official index shows house prices rise to 8% pa

The mix-adjusted average house price in the UK in September 2006 stood at £198,552, up from £197,009 in August 2006 (not seasonally adjusted), according to figures from the Department of Communities & Local Government.

UK annual house price inflation in September 2006 was 8.0%, up from 7.4% in August 2006. Annual house price inflation in London was 9.0% in September 2006, up from 7.6% in August 2006.

The UK annual house price inflation rate for the 3 months to September 2006 was 7.1%, and 7.8% in London.

UK

London

UK

All dwellings

All dwellings

All dwellings

Index
Feb 02 = 100

% change
over 12 months

Index
Feb 02 = 100

% change
over 12 months

£

Not seasonally adjusted

2006

Apr

157.6

5.0

140.0

6.7

188,095

May

159.3

5.7

141.0

7.1

190,211

Jun 

160.0 

5.3 

140.8 

5.5 

191,016

Jul

162.7

5.9

144.1

7.0

194,273

Aug

165.0

7.4

144.1

7.6

197,009

Sep

166.3

8.0

146.4

9.0

198,552

Prices rose by 0.8% between August and September, compared with a smaller rise of 0.2% over the same period last year.

The rise in UK prices between August and September can be attributed to rises in average prices for all dwellings; for terraced houses and flats (both 1.3%), bungalows (0.9%), detached houses (0.4%) and semi detached houses (0.2%).

In the home countries in September, England, Scotland and Wales saw increases in inflation, while inflation fell in Northern Ireland. The inflation rate in England rose from 6.6% in August to 7.2% in September; the inflation rate in Scotland rose from 12.7% to 12.9%; in Wales the rate rose from 7.0% to 10.3%. In Northern Ireland the rate fell from 26.6% to 23.6%.

House price inflation rose in seven of the English regions and fell in the East and South East. The highest inflation rate was in London (9.0%) followed by Yorkshire and the Humber (8.9%), North East and South West (both 7.9%), North West (7.8%) and the West Midlands (7.1%). Inflation rates were lower in the South East (5.9%) and East (5.8%). The lowest inflation rate was in the East Midlands (5.1%).

House prices: regional

Mix-adjusted average house prices in September were £206,431 in England, £160,556 in Wales, £145,653 in Scotland and £168,805 in Northern Ireland.

The English region with the highest average house price in September remains London at £289,901. The lowest average price was in the North East at £142,208.

Only the East, London, South East and the South West had average prices above the UK average.

House price inflation: type of buyer

The UK house price inflation rate for first-time buyers rose from 6.8% in August to 7.7% in September. There was a rise of 0.3% in prices between August and September in the properties bought by first-time buyers compared with a fall of 0.5% over the same period last year.

The inflation rate for former owner-occupiers rose from 7.6% in August to 8.0% in September. This was due to a rise of 0.9% in prices between August and September in the properties bought by former owner-occupiers compared with a smaller rise of 0.5% over the same period last year.

The average price paid by first time buyers across the whole of the UK was £152,633 in September, while the average price paid by former owner occupiers was £218,139.

 

The DCLG warned that late arrival of some data for July and August 2006 meant a readjustment of the figures previously published.

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