DCLG publishes June 2006 price index

The mix-adjusted average house price in the UK in June 2006 stood at 190,883, up from 190,065 in May 2006, reveals the Department of Communities and Local Governments.

The DCLGs June 2006 price index shows UK annual house price inflation in June 2006 was 5.2%, down from 5.6% in May 2006.

Annual house price inflation in London was 5.8% in June 2006, down from 7% in May 2006.

The UK annual house price inflation rate for the three months to June 2006 was 5.3%, and 6.5% in London.

The UK house price inflation rate fell from 5.6% in May 2006 to 5.2% in June 2006.

Although prices rose by 0.4% between May and June, there was a larger rise of 0.8% over the same period last year.

The small rise in UK prices between May and June can be attributed to small rises in average prices for semi-detached houses (0.9%), and terraced houses (0.7%).
In the home countries in June, England and Scotland saw falls in inflation, while inflation rose in Wales and Northern Ireland.

The inflation rate in England fell from 5.1% in May to 4.6% in June; the inflation rate in Scotland fell from 9.7% to 8.5%.

In Northern Ireland the rate rose from 18% to 18.5%; in Wales the rate rose from 4.8% to 8.2%.

House price inflation fell in seven of the English regions and rose in two. The highest inflation rate was in Yorkshire and the Humber (6.7%) followed by London (5.8%), North-East (5.5%) and South-West (5.0%).

Inflation rates were lower in other parts of England, in North West (4.9%), West Midlands (4.4%) and South-East (4.3%).

Inflation rates were lowest in East (2.8%) and East Midlands (1.9%).

Mix-adjusted average house prices in June were 198,952 in England, 155,041 in Wales, 138,672 in Scotland and 149,784 in Northern Ireland.

The English region with the highest average house price in May remains London at 279,763. The lowest average price was in the North-East at 138,998.

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 rose from 6.3% in May to 6.8% in June.

This was due to a rise of 0.5% in prices between May and June in the properties bought by first-time buyers compared with a smaller rise of less than 0.1% over the same period last year.

The inflation rate for former owner occupiers fell from 5.4% in May to 4.7% in June.

Although there was a rise of 0.4% in prices between May and June in the properties bought by former owner occupiers, this was less than the larger rise of 1.1% over the same period last year.

The average price paid by first-time buyers across the whole of the UK was 149,215 in May, while the average price paid by former owner occupiers was 208,657.