21/11/2005

Small rise in UK house prices

According to the latest figures from the Office of the Deputy Prime Minister, house prices in September rose for the first time in six months.

UK annual house price inflation in September 2005 was 3.3% up from 2.8% in August 2005. Annual house price inflation in London was 1.9% in September 2005, up from 0.8% cent in August 2005.

The mix-adjusted average house price in the UK in September 2005 stood at £186,723, up slightly from £186,208 in August 2005 (not seasonally adjusted).

The UK annual house price inflation rate for the three months to September 2005 was 3.3% and 1.2% in London.

Prices rose by 0.3% between August and September, compared to a small fall of 0.2% seen over the same period last year.

The rise in UK prices between August and September can be attributed to rises in average price of most dwelling types. In particular, prices rose for detached houses, by 1.6%, bungalows, by 0.7% and other dwelling types rose or fell by less than 0.1%.

Regionally, England, Wales and Northern Ireland saw rises in annual inflation in September, while Scotland saw a fall.

The inflation rate in England rose from 1.9% in August to 2.5% in September; in Wales the inflation rate rose from 6.6% to 6.8%; and in Northern Ireland the rise was from 11.9% to 16.7%. Over the same period, in Scotland the rate fell from 11.2% to 10.1%.

Mortgage lenders also recently confirmed a small rise in house prices following a static period attributed to a rise in the base lending rate.

(SP/KMcA)

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