The Department for Communities and Local Government (DCLG) has today published its latest House Price Index for October 2007. The mix-adjusted average house price in the UK in October 2007 stood at £220,195, up from £220,111 in September 2007 (not seasonally adjusted). UK annual house price inflation in October 2007 was 11.3%, up from 10.8% in September 2007. Annual house price inflation in London was 17.7% in October, up from 16.5% in September. The UK annual house price inflation rate for the 3 months to October was 11.1%, and 17.1% in London.
The UK house price inflation rate rose from 10.8% in September 2007 to 11.3% in October 2007. Between September and October there was a rise of less than 0.1% in the prices index of properties bought, compared with a fall of 0.4% over the same period last year, resulting in an increase in the inflation rate.
The small rise in UK prices between September and October can be attributed to increases in average prices for detached houses (0.8%), semi-detached houses (0.2%) and bungalows (0.1%). It is partly offset by a fall in the price of terraced houses (0.4%) and flats (0.7%).
England, Scotland and Wales saw increases in house price inflation in October 2007. In England annual house price inflation increased from 10.1% in September to 10.7% in October. In Scotland house price inflation increased from 12.5% in September to 13.9% in October. In Wales house price inflation rose to 9.7% in October from 6.2% in September. Northern Ireland, though, saw a decrease in house price inflation from 42.7 in September to 32.5% in October 2007.
House price inflation rose in six of the English regions and fell in three regions. The highest inflation rate was in London (17.7%) followed by South East (11.7%), and the South West (9.6%). Inflation rates were lower in the East (9.3%), Yorkshire and the Humber (7.3%) and the North West (7.2%). The lowest inflation rates were in the West Midlands (6.7%), the East Midlands (6.4%) and the North East (5.2%).
Note: The DCLG house price index is based on a sample of completions data (about 50,000 per month) from about 60 mortgage lenders who supply data through the Regulated Mortgage Survey (RMS) of the Council of Mortgage Lenders (CML)/BankSearch.
