UK house prices fall 0.3%

The UK average house price fell by 0.3 per cent in the year to July 2008, down from a rise of 0.6 per cent in the year to June 2008, according to the Department of Communities and Local Government (DCLG).

Between June and July there was a rise of 1.0 per cent in the prices index of properties bought compared with a larger rise of 1.9 per cent over the same period last year, resulting in a decrease in the annual rate.

The rise in UK prices between June and July 2008 can be attributed to increases in average prices for flats (2.3 per cent), bungalows (1.8 per cent), detached houses (1.2 per cent), semi-detached houses (0.7 per cent) and terraced houses (0.1 per cent).

Annual house prices fell in all countries of the UK except Scotland in the year to July 2008. In Scotland annual house price growth was 3.6 per cent in July. In England annual growth in house prices was -0.3 per cent in July; In Wales annual house price growth was -0.8 per cent in July; In Northern Ireland annual growth in house prices was -10.3 per cent in July.

House price annual rates of change fell in six of the English regions and rose in the other three.

The highest annual house price growth was in the East (0.8 percent) followed by the North West (0.5 per cent), and the South East (0.1 per cent). Annual house price growth was lower in London (0.0 per cent), the East Midlands (-0.8 per cent) and the West Midlands (-0.9 per cent). The lowest annual house price growth was seen in the North East (-1.0 per cent), Yorkshire and the Humber (-1.3 per cent) and the South West (-1.9 per cent).

Mix-adjusted average house prices in July 2008 were £224,207 in England, £163,202 in Wales, £167,220 in Scotland and £221,447 in Northern Ireland.

The English region with the highest average house price in July remains London at £343,182. The lowest average price was in the North East at £147,965.

Of the English regions, only the East, London, South East and the South West had average prices above the UK average.

The UK annual growth in house prices for first time buyers fell from -0.5 per cent in June to -1.6 per cent in July. There was an increase of 0.5 per cent between June and July in the price of properties bought by first time buyers compared with a larger rise of 1.7 per cent last year resulting in a decrease in the annual rate.

The annual house price growth rate for former owner occupiers fell from 0.9 per cent in June to 0.1 per cent in July. The prices index between June and July for properties bought by former owner occupiers rose by 1.2 per cent whereas there was a higher rise of 2.0 per cent at the same time last year resulting in a decrease in the annual rate.

The average price paid by first time buyers across the whole of the UK was £160,414 in July, while the average price paid by former owner occupiers was £250,850.