The Department for Communities and Local Government (DCLG) reports that 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). 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.
The UK house price inflation rate rose from 7.4% in August 2006 to 8.0% in September 2006. 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%).
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.
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.
