The Department for Communities and Local Goverment (DCLG) has released the DCLG House Price Index for August 2006. The mix-adjusted average house price in the UK stood at £197,631, up from £194,454 in July 2006 (not seasonally adjusted). UK annual house price inflation in August 2006 was 7.7%, up from 6.0% in July 2006. Annual house price inflation in London was 7.9%, up from 7.1% in July 2006. The UK annual house price inflation rate for the 3 months to August 2006 was 6.3%, and 6.8% in London.
HOUSE PRICE INFLATION: REGIONAL
The UK house price inflation rate rose from 6.0% in July 2006 to 7.7% in August 2006. Prices rose by 1.6% between July and August, compared with almost no change over the same period last year. The rise in UK prices between July and August can be attributed to rises in average prices for bungalows (5.1%) detached houses (3.2%), flats (1.6%), and semi detached houses (1.0%). England, Scotland and Northern Ireland saw increases in inflation, while inflation fell in Wales. The inflation rate in England rose from 5.5% in July to 7.0% in August; the inflation rate in Scotland rose from 9.3% to 12.8%; in Northern Ireland the rate rose from 18.3% to 25.9%. In Wales the rate fell from 7.4% to 7.1%. The highest inflation rate was in London and the South West (both 7.9%) followed by Yorkshire and the Humber (7.3%), North East and South East (both 7.2%), North West (7.0%). Inflation rates were lower in East (6.4%). Inflation rates were lowest in West Midlands (5.9%) and East Midlands (4.4%) respectively.
HOUSE PRICES: REGIONAL
Mix-adjusted average house prices were £205,556 in England, £158,028 in Wales, £145,490 in Scotland and £166,398 in Northern Ireland. The English region with the highest average house price remains London at £286,369. The lowest average price was in the North East at £142,901. 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 5.6% in July to 6.9% in August. There was a rise of 1.3% in prices between July and August in the properties bought by first time buyers, this was more than the rise of less than 0.1% over the same period last year. The inflation rate for former owner occupiers rose from 6.1% in July to 8.0% in August. This was due to a rise of 1.7% in prices between July and August in the properties bought by former owner occupiers compared with a fall of less than 0.1% over the same period last year. The average price paid by first time buyers across the whole of the UK was £152,172 in August, while the average price paid by former owner occupiers was £217,021.
