House price inflation falls in August, while average price rises

15 October 2007
The UK house price inflation rate fell from 12.4 per cent in July to 11.4 per cent in August 2007, according to the Department for Communities and Local Government.

There was a 0.5 per cent rise in the prices index of properties bought between July and August, compared with a 1.4 per cent increase in the corresponding period last year, resulting in a decrease in the inflation rate.

The rise in UK prices has been attributed to increases in average prices for detached houses (1.7 per cent), semidetached houses, (0.5 per cent), terraced houses (0.2 per cent) and bungalows (0.1 per cent). However, the rise is partially offset by a decline in the price of flats (0.9 per cent).

House price inflation fell in England,Scotland and Northern Ireland in August. Inflation in England fell from 11.5 per cent in July to 10.6 per cent in August, while in Scotland house price inflation fell from 16.4 per cent to 13.2 per cent. Northern Ireland witnessed a decline from 46.8 per cent to 44 per cent. Wales was the only exception, as house price inflation increased from 7.6 per cent in July to 7.9 per cent in August.

The highest inflation rate for England was seen in London (17.4 percent), while the lowest was found in the West Midlands (6.2 per cent).

Mix-adjusted average house prices in August were £226,902 in England, £168,298 in Wales, £164,123 in Scotland and £246,785 in Northern

Ireland. Again, London was at the high end, with the average totalling £339,569. The lowest average price was in the North East at £151,007.

House price inflation for first time buyers fell from 13.2 per cent in July to 11.9 per cent in August, while the rate for former owner occupiers fell from 12.1 per cent in July to 11.2 per cent in August.

The average price paid by first-time buyers across the whole of the UK was £167,070 in August, while the average price paid by former owner occupiers was £245,263.

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