The house price index showed the UK house price inflation rate rose from 6.0 per cent in July 2006 to 7.7 per cent in August 2006. Prices rose by 1.6 per cent between July and August, compared with almost no change over the same period last year. The rise in UK prices between July and August can be attributed to rises in average prices for bungalows (5.1per cent) detached houses (3.2 per cent), flats (1.6 per cent), and semi detached houses (1.0 per cent).
In the home countries in August, England, Scotland and Northern Ireland saw increases in inflation, while inflation fell in Wales. The inflation rate in England rose from 5.5 per cent in July to 7.0 per cent in August; the inflation rate in Scotland rose from 9.3 per cent to 12.8 per cent; in Northern Ireland the rate rose from 18.3 per cent to 25.9 per cent. In Wales the rate fell from 7.4 per cent to 7.1 per cent.
House price inflation rose in eight of the English regions and fell in Yorkshire and the Humber. The highest inflation rate was in London and the South West (both 7.9 per cent) followed by Yorkshire and the Humber (7.3 per cent), North East and South East (both 7.2 per cent), North West (7.0 per cent). Inflation rates were lower in East (6.4 per cent). Inflation rates were lowest in West Midlands (5.9 per cent) and East Midlands (4.4 per cent) respectively.
Mix-adjusted average house prices in August were £205,556 in England, £158,028 in Wales, £145,490 in Scotland and £166,398 in Northern Ireland.
The English region with the highest average house price in August remained London at £286,369. The lowest average price was in the North East at £142,901. 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 5.6 per cent in July to 6.9 per cent in August. There was a rise of 1.3 per cent in prices between July and August in the properties bought by first time buyers, this was more than the rise of less than 0.1 per cent over the same period last year.
The inflation rate for former owner occupiers rose from 6.1 per cent in July to 8.0 per cent in August. This was due to a rise of 1.7 per cent in prices between July and August 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 £152,172 in August, while the average price paid by former owner occupiers was £217,021.
