Money News
Despite a slight increase in house prices in December the overall housing market continues to cool, latest figures from the Department for Communities and Local Government (DCLG) show.
The mix-adjusted average house price in the UK in December stood at £219,591, up from £218,662 in November 2007 (not seasonally adjusted). UK annual house price inflation was 9.1%, down from 9.7% in November.
Annual house price inflation in London was 13.5%, down from 14.5% in November. This is the second consecutive month that the annual house price inflation rate in the capital has fallen. Meanwhile, the UK house price inflation rate for the 3 months to December was 10.0%. And 15.2% in London.
The fall in the year-on-year inflation rate from 9.7% to 9.1% came after a rise of 0.4% in the prices index of properties bought, compared with a larger rise of 0.9% over the same period last year, thereby resulting in a decrease in the rate.
The monthly rise can be attributed to increases in average prices for detached houses (1.0%), terraced houses (0.6%), flats (0.5%) and semi-detached houses (0.2%). It was partly offset by a fall in the price of bungalows (2.3%).
England, Scotland and Northern Ireland all saw decreases in annual house price inflation in December - the rate in England coming in at 9.0% (9.3%), in Scotland at 10.8% (14.1%) and in Northern Ireland at 12.0% (17.4%). In Wales though, inflation increased to 6.1% (6.0%).
Inflation fell in five of the English regions and rose in the other four. The highest rate was in London (13.5%) followed by the South East (11.0%), and the East (8.4%). Inflation rates were lower in the South West (8.0%), East Midlands (7.4%) and the North West (6.7%).
The lowest rates were in Yorkshire and the Humber (5.8%), the North East (4.4%) and the West Midlands (4.0%).
Meanwhile, the UK house price inflation rate for first time buyers fell from 9.8% to 9.5%, while for former owner occupiers it decreased from 9.7% to 9%.
The average price paid by first time buyers was £166,734, while the average price paid by former owner occupiers was £245,522.
11 February 2008 © Moneyextra.com
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