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House price inflation up in July, says ODPM

It says that this was due to a rise of 2.1% in prices between June and July, compared with a rise of 1.7% over the same period last year.

The rise in UK prices between June and July was broad-based, with rises in prices for detached properties by 3.2%, semi-detached by 2.4% and terraced houses by 2.3%.

All the home countries, except Scotland, saw a rise in annual inflation. Inflation in England rose from 13.1% in June to 13.4% in July, while inflation in Wales rose to 30.4%, up from 26.1% in June. Inflation in Scotland remained high, even though it fell from 23.8% in June to 22.3% in July. Annual inflation in Northern Ireland remains erratic with a rise from 6.4% in June to 14.4% this month in July.

Annual inflation in England rose from 13.1% in June to 13.4% in July. House price inflation rose across all the regions except for Yorkshire and the Humber and London. The highest rates remain in the North-East, 29.5%, the North-West, 26.0%, and Yorkshire and the Humber, 25.2%.

Inflation rates in these regions remain substantially higher than in the rest of England, although rates in the East Midlands and West Midlands are above 17%. Inflation in London fell from 11.8% in June to 8.4% in July – due to a smaller increase in prices between June and July this year compared with last year.

The South-East had the lowest rate of inflation in July, at 8.2%.

Mix-adjusted average house prices in July were £189,939 in England, £136,624 in Wales, £113,398 in Scotland and £110,541 in Northern Ireland.

The English region with the highest average house price in July was London at £266,277. The lowest average price was in the North-East at £127,173.

Only the East, London, South-East and the South-West had average prices above the UK average.

The UK house price inflation rate for first time buyers fell to 17.6% in July from 20.8% in June. This was due to an increase of 2.6% in prices between June and July, compared with an increase of 5.4% over the same period last year. The inflation rate for former owner occupiers rose to 13.0% in July from 11.0% in June. This was due to a rise of 2% in prices from June to July, compared with an increase of 0.2% over the same period last year.

The average house price in the UK for first time buyers stood at £143,270 in July, while the average price paid by former owner occupiers stood at £196,008. The ODPM adds that the rise in the average price paid by first time buyers has to be seen in the context of fewer first time buyers entering the market.


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