The government department of Communities and Local Government has released its House Price Index for September 2007. The mix-adjusted average house price in the UK in September 2007 stood at £220,111, up from £219,369 in August 2007 (not seasonally adjusted). UK annual house price inflation in September 2007 was 10.8%, down from 11.3% in August 2007. Annual house price inflation in London was 16.5% in September, down from 17.2% in August. The UK annual house price inflation rate for the 3 months to September was 11.5% and 17.5% in London.
The UK house price inflation rate fell from 11.3% in August 2007 to 10.8% in September 2007. Between August and September there was a rise of 0.3% in the prices index of properties bought compared with a bigger rise of 0.8% over the same period last year resulting in a decrease in the inflation rate.
The rise in UK prices between August and September can be attributed to increases in average prices for flats (1.2%), semi-detached houses and bungalows, (0.3%) and detached houses (0.1%). It is partly offset by a fall in the price of terraced houses (0.2%).
All four countries of the UK, England, Scotland, Wales and Northern Ireland, saw decreases in house price inflation in September 2007. In England annual house price inflation fell from 10.5% in August to 10.1% in September; In Scotland house price inflation fell from 13.1% in August to 12.5% in September; In Wales house price inflation decreased from 7.8% in August to 6.2% in September. In Northern Ireland house price inflation fell from 45.4% in August to 42.7% in September.
House price inflation rose in three of the English regions and fell in six regions. The highest inflation rate was in London (16.5%) followed by South East (11.5%), and the South West (9.2%). Inflation rates were lower in the East (8.3%), North East and the Yorkshire and the Humber (7.5% each). The lowest inflation rates were in the East Midlands (6.8%), the North West (6.2%) and the West Midlands (5.0%).
The survey is based on a sample of completions data obtained from some 60 mortgage lenders.
