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News: House prices surge, official figures show

UK annual house price inflation in January surged ahead to 10.9%, up from 9.9% in December 2006, according to the Department for Communities and Local Government.

The figures released yesterday brought the mix-adjusted average house price in the UK in January to £205,286, up from £201,090 in December 2006 (not seasonally adjusted).

UK
All dwellings

London
All dwellings

UK
All dwellings

 Index
Feb 02 = 100  

% change 
 over 12
 months

 Index
 Feb 02 = 100 

 % change
 over 12
 months

£

 2006

 Aug

 165.0

7.4 

144.1 

7.6 

197,009 

 Sept

 166.3

8.0

146.4 

9.0 

198,552 

 Oct

165.6 

8.5 

145.4 

10.4 

197,740 

 Nov

166.9 

8.8 

146.7 

9.9 

199,238 

 Dec

168.5 

9.9 

149.5 

11.8 

201,090 

 2007

Jan 

172.0

10.6

154.1

13.2 

205,286 

Between December 2006 and January 2007 there was a rise of 2.1% in the prices index of properties bought compared with a lower increase of 1.1% over the same period last year resulting in an increase in the inflation rate.

The rise in UK prices between December and January can be attributed to rises in average prices for detached houses (4.9%), terraced houses (2.0%), bungalows (1.5%) and flats (1.3%). The price of semi-detached houses rose by less than 0.1%.

Regional inflation

In the home countries in January 2007, England, Scotland, Wales and Northern Ireland all saw increases in inflation. The inflation rate in England rose from 8.9% in December 2006 to 9.9% in January 2007; the inflation rate in Scotland rose from 15.2% to 15.9%; in Wales the rate rose from 9.1% to 10.2%; in Northern Ireland the rate rose from 39.9% to 42.5%.

House price inflation rose in six of the English regions. The exceptions were the South East, where it remained constant, and North East and West Midlands, where it fell. The highest inflation rate was in London (13.2%) followed by the North West (11.1%), Yorkshire and the Humber (10.7%) and the South West (9.7%).

Inflation rates were lower in South East (8.7%), East (8.3%), and North East (8.2%). The lowest inflation rates were in the East and West Midlands (both 7.6%).

Regional house price indices

 

House prices: regional

Mix-adjusted average house prices in January were £212,845 in England, £162,610 in Wales, £150,509 in Scotland and £198,476 in Northern Ireland.

The English region with the highest average house price in December remains London at £305,248. The lowest average price was in the North East at £145,091.

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 9.4% in December to 10.6% in January. There was a rise of 1.9% in the prices index between December and January in the properties bought by first-time buyers compared with a rise of 0.8% over the same period last year.

UK annual house price inflation by type of buyer
12-month % change

 

The inflation rate for former owner-occupiers rose from 10.0% in December to 11.0% in January. There was a rise of 2.1% in the prices index between December and January in the properties bought by former owner-occupiers, compared with a rise of 1.2% over the same period last year.

The average price paid by first-time buyers across the whole of the UK was £158,097 in January, while the average price paid by former owner occupiers was £225,415.

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