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News: Official house price inflation up 0.5%

The mix-adjusted average house price in the UK in May 2006 stood at £190,051, up from £188,290 in April 2006, the Department for Communities and Local Government said in their statistical release today.

The UK house price inflation rate rose from 5.1% in April 2006 to 5.6% in May 2006. Prices rose by 0.9% between April and May, compared to a smaller rise of 0.5% seen over the same period last year.

The UK annual house price inflation rate for the 3 months to May 2006 was 4.7%, and 6.1% in London.

UK annual house price inflation (all dwellings)

 

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

2005

Dec

153.3

2.9

133.7

3.8

185,788

       

2006

Jan

155.1

4.1

136.1

5.0

185,112

 

Feb

153.2

3.4

132.5

1.5

182,925

 

Mar

156.2

3.3

138.4

4.0

186,519

 

Apr

157.7

5.1

140.5

7.1

188,290

 

May

159.2

5.6

141.1

7.1

190,051

The rise in UK prices between April and May can be attributed to rises in average prices for all property types, in particular for flats (1.5%), detached houses (1.4%) and bungalows (1.8%).

In the home countries, Wales saw a fall in inflation in May, while inflation rose in England, Scotland and Northern Ireland in May. The inflation rate in England rose from 4.7% in April to 5.2% in May, the inflation rate in Scotland rose from 7.6% to 9.3%, in Northern Ireland the rate rose from 15.8% to 16.9%. In Wales the rate fell from 6.6% to 5.1%.

House price inflation rose in five of the English regions, fell in three and was unchanged in London. The highest inflation rate was in North East (7.6%), followed by London (7.1%), North West (6.1%) and Yorkshire and the Humber (6.0%). Inflation rates were lower in other parts of England; in South West (5.1%), South East (4.5%), East (3.9%), West Midlands (3.7%) and East Midlands (2.5%).

Regional split

Mix-adjusted average house prices in May were £198,400 in England, £152,752 in Wales, £136,553 in Scotland and £146,217 in Northern Ireland.

The English region with the highest average house price in May remains London at £279,418. The lowest average price was in the North East at £139,175.

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 4.9% in April to 5.9% in May. This was due to a rise of 1.1% in prices between April and May in the properties bought by first time buyers compared with a smaller rise of 0.1% over the same period last year.

The inflation rate for former owner-occupiers rose from 5.2% in April to 5.5 in May. This was due to a rise of 0.9% in prices between April and May in the properties bought by former owner-occupiers, compared with a smaller rise of 0.6% over the same period last year.

The average price paid by first time buyers across the whole of the UK was £147,868 in May, while the average price paid by former owner-occupiers was £208,045.

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