House prices fell 8.6% in a year

The UK average house price fell by 8.6 per cent in the year to November 2008, compared with a fall of 7.4 per cent in the year to October 2008, according to the Communities and Local Government (CLG). Between October and November there was a fall of 1.9 per cent in the prices index of properties bought compared with a smaller fall of 0.6 per cent over the same period last year, resulting in a decrease in the annual rate.

The fall in UK prices between October and November 2008 can be attributed to decreases in average prices for terraced houses (3.5 per cent), bungalows (2.5 per cent), semi-detached houses (2.1 per cent) and detached houses (1.2 per cent). The fall was partly offset by a rise in the prices for flats (0.2 per cent).

Annual house prices fell in all UK countries in the year to November 2008. Annual house price growth was -8.7 per cent in England, was -10.1 per cent in Wales, was -3.9 per cent in Scotland and was -16.2 per cent in Northern Ireland in November.

Average house prices fell in all nine of the English regions during November.

The annual house price growth ranged from -7.0 per cent in London to -10.7 in the East. The annual growth rates in the other regions were -7.9 per cent in each of the North East and the North West, -8.1 per cent in the West Midlands, -8.6 per cent in Yorkshire and the Humber, -9.2 per cent in the South East, -9.4 per cent In the South West and -9.9 per cent in the East Midlands.

Mix-adjusted average house prices in November 2008 were £206,161 in England, £150,123 in Wales, £156,770 in Scotland and £191,401 in Northern Ireland.

The English region with the highest average house price in November remains London at £314,045. The lowest average price was in the North East at £138,378.

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 -9.7 per cent in October to -11.8 per cent in November. There was a decrease of 3.0 per cent between October and November in the price of properties bought by first time buyers compared with a smaller fall of 0.7 per cent last year resulting in a decrease in the annual rate.

The annual house price growth rate for former owner occupiers was -7.4 per cent in November, down from -6.6 per cent in October. The prices index between October and November for properties bought by former owner occupiers fell by 1.5 per cent compared with a smaller fall of 0.6 per cent at the same time last year resulting in an increase in the annual rate.

The average price paid by first time buyers across the whole of the UK was £142,477 in November, while the average price paid by former owner occupiers was £233,707.