Average UK house price tops £200,000

The mix-adjusted average house price in the UK in December 2006 stood at £201,090, up from £199,238 in November 2006, according to figures released by the Department for Communities and Local Government (DCLG).

The UK house price inflation rate rose from 8.8 per cent in November 2006 to 9.9 per cent in December 2006. Between November and December there was a rise of 0.9 per cent in the prices of properties bought compared with a decrease of less than 0.1 per cent over the same period last year resulting in an increase in the inflation rate.

The rise in UK prices between November and December can be attributed to rises in average prices for flats (2.6 per cent), bungalows (2.2 per cent), semi-detached houses (1.6 per cent) and terraced houses (0.8 per cent). The price of detached houses fell slightly (0.8 per cent).

In the home countries in December, England, Scotland and Northern Ireland saw increases in inflation, while inflation fell in Wales. The inflation rate in England rose from 7.8 per cent in November to 8.9 per cent in December; the inflation rate in Scotland rose from 13.4 per cent to 15.2 per cent; in Northern Ireland the rate rose from 37.2 per cent to 39.9 per cent. In Wales the rate fell from 10.2 per cent to 9.1 per cent.

House price inflation rose in six of the English regions (North East, East Midlands, West Midlands, East, London and South East) and fell in two regions (North West and South West) and remained the same in one (Yorkshire and the Humber). The highest inflation rate was in London (11.8 percent) followed by the Yorkshire and the Humber (9.9 per cent), South East (8.7 per cent) and North East (8.4 per cent). Inflation rates were lower in the East (8.1 per cent), the West Midlands (7.8 per cent), South West (7.7 per cent) and North West (7.4 per cent). The lowest inflation rate was in the East Midlands (6.1 per cent).

House prices: Regional

Mix-adjusted average house prices in December were £208,525 in England, £160,060 in Wales, £147,687 in Scotland and £191,505 in Northern Ireland.

The English region with the highest average house price in December remains London at £296,160. The lowest average price was in the North East at £146,183.

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

House price inflation: Type of buyer

The UK house price inflation rate for first time buyers rose from 8.9 per cent in November to 9.4 per cent in December. There was a rise of 0.8 per cent in prices between November and December in the properties bought by first time buyers compared with a rise of 0.3 per cent over the same period last year.

The inflation rate for former owner occupiers rose from 8.8 per cent in November to 10.0 per cent in December. There was a rise of 1.0 per cent in prices between November and December in the properties bought by former owner occupiers, compared with a fall of less than 0.1 per cent over the same period last year.

The average price paid by first time buyers across the whole of the UK was £155,120 in December, while the average price paid by former owner occupiers was £220,699.