Average UK house price 198K, says DCLG

Government figures show the average UK house price leapt up from 197,000 in August to 198,552 in September 2006.

The Department for Communities and Local Government says the rise in UK prices between August and September can be attributed regionally to rises in average prices for all dwellings.

Terraced houses and flats rose 1.3%, bungalows by 0.9%, detached houses by 0.4% and semi detached houses by 0.2%.

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.

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 by 9%
followed by Yorkshire and the Humber at 8.9%, North East and South
West, both by 7.9%, North West (7.8 per cent) and the West Midlands
(7.1 per cent). Inflation rates were lower in the South East at 5.9% at and East at 5.8%. The lowest inflation rate was in the East Midlands at 5.1%.

Milan Khatri, chief economist at the Royal Institution of Chartered Surveyors, says: “The government’s official house price measure showed a marked acceleration in price rises to an annual rate of 8.0% in September, the highest pace since March 2005.

“Higher inflation pressures have been apparent across all regions since the summer as the job market has strengthened.

“First-time buyer property prices showed a firm acceleration to a 7.7% annual rise up from 4.1% at the end of last year with increases easily outstripping wage growth.

“However, as lenders react to last week’s Bank of England interest rate rise, we expect the housing market to begin to cool next year.”