In its latest Statistical Release, The Department for Communities and Local Government (DCLG) reports the House Price Index for July 2006. The mix-adjusted average house price in the UK in July 2006 stood at £194,454, up from £191,016 in June 2006 (not seasonally adjusted). UK annual house price inflation in July 2006 was 6.0%, up from 5.3% in June 2006. Annual house price inflation in London was 7.1% in July 2006, up from 5.5% in June 2006. The UK annual house price inflation rate for the 3 months to July 2006 was 5.7%, and 6.6% in London.
HOUSE PRICE INFLATION: REGIONAL
The UK house price inflation rate rose from 5.3% in June 2006 to 6.0% in July 2006. Prices rose by 1.8% between June and July, compared with a smaller rise of 1.1% over the same period last year. The rise in UK prices between June and July can be attributed to small rises in average prices for detached houses (0.6%), terraced houses (0.5%), and semi detached houses (0.5%).
In the home countries in June, England and Scotland saw increases in inflation, while inflation fell in Wales and Northern Ireland. The inflation rate in England rose from 4.6% in June to 5.5% in July; the inflation rate in Scotland rose from 8.9% to 9.3%. In Northern Ireland the rate fell from 19.1% to 18.3%; in Wales the rate fell from 8.5% to 7.4%.
House price inflation rose in seven of the English regions, fell in the West Midlands and remained constant in the South East. The highest inflation rate was in Yorkshire and the Humber (8.4%) followed by London (7.1%), North West (6.2%), North East (5.8) and South West (5.6%). Inflation rates were lower in other parts of England, in South East (4.5%) and East (4.3%). Inflation rates were lowest in East and West Midlands (3.9%) and (3.3%) respectively.
HOUSE PRICES: REGIONAL
Mix-adjusted average house prices in July were £202,660 in England, £156,205 in Wales, £140,460 in Scotland and £158,104 in Northern Ireland. The English region with the highest average house price in July remains London at £285,434. The lowest average price was in the North East at £140,609. 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 fell from 6.9% in June to 5.6% in July. Although there was a rise of 0.6% in prices between June and July in the properties bought by first time buyers, this was less than the larger rise of 1.9% over the same period last year.
The inflation rate for former owner occupiers rose from 4.8% in June to 6.1% in July. This was due to a rise of 2.2% in prices between June and July in the properties bought by former owner occupiers compared with a smaller rise of 0.8% over the same period last year. The average price paid by first time buyers across the whole of the UK was £150,252 in June, while the average price paid by former owner occupiers was £213,309.
