The mix-adjusted average house price in the UK in October stood at £197,987, down from £198,552 in September (not seasonally adjusted) but the UK annual HPI was 8.6 per cent, up from 8.0 per cent in September. Annual house price inflation in London was 10.6 per cent, up from 9.0 per cent in September.
House price inflation - Regional
The UK house price inflation rate rose from 8.0 per cent in September 2006 to 8.6 per cent in October 2006. Although between September and October there was a fall of 0.3 per cent in the prices of properties bought, there was a larger fall of 0.9 per cent over the same period last year resulting in an increase in the inflation rate.
The fall in UK prices between September and October can be attributed to falls in average prices for detached dwellings (2.1 per cent) and terraced houses (0.1 per cent). For all other dwelling types there were rises; for semi-detached houses (0.9 per cent), bungalows (0.7 per cent) and flats (0.3 per cent).
In the home countries in October, England, Scotland and Northern Ireland saw increases in inflation, while inflation fell in Wales. The inflation rate in England rose from 7.2 per cent in September to 7.9 per cent in October; the inflation rate in Scotland rose from 12.9 per cent to 13.6 per cent; in Northern Ireland the rate rose from 23.6 per cent to 31.6 per cent. In Wales the rate fell from 10.3 per cent to 7.0 per cent.
House price inflation rose in six of the English regions and fell in the North East, Yorkshire and the Humber and the West Midlands. The highest inflation rate was in London (10.6 per cent) followed by Yorkshire and the Humber (8.4 per cent), South West (8.2 per cent) and the North West (7.9 per cent). Inflation rates were lower in the East (7.1 per cent), the South East (6.8 per cent), North East and West Midlands (both 6.7 per cent). The lowest inflation rate was in the East Midlands (5.4 per cent).
House prices - Regional
Mix-adjusted average house prices in October were £205,688 in England, £158,105 in Wales, £145,315 in Scotland and £175,991 in Northern Ireland.
The English region with the highest average house price in October remains London at £288,593. The lowest average price was in the North East at £143,252.
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 7.7 per cent in September to 8.5 per cent in October. There was a rise of 0.3 per cent in prices between September and October in the properties bought by first-time buyers compared with a fall of 0.4 per cent over the same period last year.
The inflation rate for former owner occupiers rose from 8.0 per cent in September to 8.7 per cent in October. Although between September and October there was a fall of 0.5 per cent in the prices of properties bought by former owner occupiers, there was a larger fall of 1.1 per cent over the same period last year.
The average price paid by first-time buyers across the whole of the UK was £153,083 in October, while the average price paid by former owner occupiers was £217,141.
