The department for Communities and Local Government has released its October House Price Index. The mix-adjusted average house price in the UK in October 2006 stood at £197,987, down from £198,552 in September 2006 (not seasonally adjusted). UK annual house price inflation in October 2006 was 8.6%, up from 8.0% in September 2006. Annual house price inflation in London was 10.6% in October 2006, up from 9.0% in September 2006. The UK annual house price inflation rate for the 3 months to October 2006 was 8.0% and 9.1% in London.
First Time Buyers
The UK house price inflation rate for first time buyers rose from 7.7% in September to 8.5% in October. There was a rise of 0.3% in prices between September and October in the properties bought by first time buyers compared with a fall of 0.4% over the same period last year.
The inflation rate for former owner occupiers rose from 8.0% in September to 8.7% in October. Although between September and October there was a fall of 0.5% in the prices of properties bought by former owner occupiers, there was a larger fall of 1.1% over the same period last year.
The average price paid by first time buyers across the whole of the UK was £153,083 in October, while the average price paid by former owner occupiers was £217,141.
