UK house prices fell in February

The average UK house price in February 2007 stood at £205,102, down from £205,399 in January 2007, according to the Communities and Local Government (CLG) house price index.

House price inflation rate rose from 10.9 per cent in January 2007 to 12.1 per cent in February 2007. Between January and February there was a fall of 0.1 per cent in the prices index of properties bought compared with a larger fall of 1.2 per cent over the same period last year resulting in an increase in the inflation rate.

The small fall in UK prices between January and February can be attributed to falls in average prices for bungalows (1.1 per cent), terraced houses and detached houses (both 0.5 per cent) only partly offset by a rise in the price of flats (0.9 per cent) and semi-detached houses (0.1 per cent).

All the home countries, England, Scotland, Wales and Northern Ireland, saw increases in inflation in February 2007. The inflation rate in England rose from 9.9 per cent in January to 11.0 per cent in February; the inflation rate in Scotland rose from 15.9 per cent to 16.6 per cent; in Wales the rate rose from 10.2 per cent to 11.1 per cent; in Northern Ireland the rate rose from 42.5 per cent to 47.5 per cent.

House price inflation rose in five of the English regions and fell in four regions. The highest inflation rate was in London (16.7 percent) followed by the East (12.0 per cent), South East (10.8 per cent), South West (9.5 per cent) and North East (9.4 per cent). Inflation rates were lower in Yorkshire and the Humber (8.9 per cent), and North West (8.3 per cent). The lowest inflation rates were in the West and East Midlands (7.9 per cent and 6.8 per cent respectively).

House prices: Regional

Mix-adjusted average house prices in February were £212,642 in England, £162,152 in Wales, £149,882 in Scotland and £209,643 in Northern Ireland.

The English region with the highest average house price in February remains London at £310,245. The lowest average price was in the North East at £144,213.

Of the English regions, 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 10.6 per cent in January to 12.5 per cent in February. There was a rise of 0.5 per cent in the prices index between January and February in the properties bought by first time buyers compared with a fall of 1.2 per cent over the same period last year.

The inflation rate for former owner occupiers rose from 11.0 per cent in January to 11.9 per cent in February. There was a fall of 0.4 per cent in the prices index between January and February in the properties bought by former owner occupiers, compared with a larger fall of 1.2 per cent over the same period last year.

The average price paid by first time buyers across the whole of the UK was £156,031 in February, while the average price paid by former owner occupiers was £229,176.