June house price inflation reaches 12.1%

| August 14, 2007 | 0 Comments

The Department of Communities and Local Government (DCLG) has published new data showing growth in house price inflation in June of this year, with the mix-adjusted average house price in the UK increasing to £214,222, as compared with £210,793 in May. (Figures not seasonally adjusted).

The department recorded UK annual house price inflation of 12.1% in June, up from 10.8% in May. London inflation was ahead of this at 17.5%, compared with 14.3% in May.

The increases give a UK annual house price inflation rate for the 3 months to June of 11.3% (15.1% in London).

During June, the average cost of a flat rose by 2.4%, detached properties and bungalows by 2.3%, semi-detached homes by 1.1% and terraced houses by 1.0%.

Regional differences for June were as follows: Wales saw a decrease in inflation from 8.5% to 7.6%; inflation stayed the same in Scotland at 15.6%; in England inflation rose from 9.6% to 11% and in and in Northern Ireland from 53.0% to 55.9%.

The month saw an increase in house price inflation across all nine regions of England, with the highest rate being London (17.5%) followed by the South East (10.7%), East, Yorkshire and the Humber (both 9.6%) and the South West (9.4%).

Inflation rates were lower in the North West (9.1%), East Midlands (8.5%) and the North East (8.1%). The lowest inflation rate was in the West Midlands (7.0%).

Mix-adjusted average house prices in June were £221,370 in England, £165,119 in Wales, £160,363 in Scotland and £240,302 in Northern Ireland.

The English region with the highest average house price in June remained London at £332,009. The lowest average price was in the North East at £148,992.

The DCLG’s house price data shows stronger growth than expected by many property experts, indicating that the housing market is proving resilient to higher interest rates.

However, DCLG figures are published behind other indexes, and recent figures for July from Nationwide, Rightmove, Hometrack and the Royal Institute of Chartered Surveyors suggest that the market is slowing.

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