The house price inflation ebbed to its nine year low when the percentage plummeted from 4 per cent in July 2005 to 2.8 per cent in August 2005. The Office for the Deputy Prime Minister (ODPM) clarified that the annual gain was the weakest since it touched 1.1 percent in the second quarter of 1996.
The average house price stood at 186,208 pounds in August showing barely a change when compare to that of July. The mix-adjusted prices have not seen any change between July and August 2005. There were virtually no differences between the prices paid by first-time buyers or former owner occupiers.
If each country in the UK is taken in to account, inflation rate in England fell from 3.1 per cent in July to 1.9 per cent in August, in Wales the rate fell from 7.6 per cent to 6.6 per cent over the same period, while in Scotland it fell from 12.0 per cent to 11.2 per cent and in Northern Ireland it fell from 15.9 per cent to 11.9 per cent.
Barring the North West, Yorkshire & the Humber, the house price inflation fell between July and August in the rest of United Kingdom. Here, the inflation prices are at 5.5 per cent, 7.4 per cent and 7.3 per cent respectively.
The average price shelled out by the first time buyers in August across the whole of the UK was £153,285, while the average price paid by the former owner occupiers was £201,110 for the same month.
Inflation rates are lowest in London, the East and South West where they are below 1.0 per cent. South-East has the lowest inflation rate at -0.4 per cent in August.
"A sharp correction in house prices currently looks very unlikely (but) we remain sceptical that house prices are set to see sustained sharp rises any time soon," says Howard Archer, an economist with Global Insight.
Posted
on : Mon, 10 Oct 2005 13:10 GMT | Mortgages News
By : Salim Patel
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