The UK house price inflation rate fell from 9.7 per cent in November 2007 to 9.1 per cent in December 2007 according to the latest Government figures.

Between November and December there was a rise of 0.4 per cent in the prices index of properties bought compared with a larger rise of 0.9 per cent over the same period last year resulting in a decrease in the inflation rate.

The rise in UK prices between November and December can be attributed to increases in average prices for detached houses (1.0 per cent), terraced houses (0.6 per cent), flats (0.5 per cent) and semi-detached houses (0.2 per cent). It is partly offset by a fall in the price of bungalows (2.3per cent).

England, Scotland and Northern Ireland saw decreases in house price inflation in December 2007. In England annual house price inflation fell from 9.3 per cent in November to 9.0 per cent in December; In Scotland annual house price inflation fell from 14.1 per cent in November to 10.8 per cent in December;

In Northern Ireland annual house price inflation fell from 17.4 per cent in November to 12.0 per cent in December. Wales, though, saw an increase in house price inflation from 6.0 per cent in November to 6.1 per cent in December.

House price inflation fell in five of the English regions and rose in the other four regions. The highest inflation rate was in London (13.5 percent) followed by the South East (11.0 per cent), and the East (8.4 per cent). Inflation rates were lower in the South West (8.0 per cent), East Midlands (7.4 per cent) and the North West (6.7 per cent). The lowest inflation rates were in Yorkshire and the Humber (5.8 per cent), the North East (4.4 per cent) and the West Midlands (4.0 per cent).

- The mix-adjusted average house price in the UK in December 2007 stood at £219,591, up from £218,662 in November 2007 (not seasonally adjusted).
- UK annual house price inflation in December 2007 was 9.1 per cent, down from 9.7 per cent in November 2007. Annual house price inflation in London was 13.5 per cent in December, down from 14.5 per cent in November.
- The UK annual house price inflation rate for the 3 months to December was 10.0 per cent and 15.2 per cent in London.

Regional Prices
Mix-adjusted average house prices in December were £227,765 in England, £167,739 in Wales, £163,206 in Scotland and £219,698 in Northern Ireland.

The English region with the highest average house price in December remains London at £340,631. The lowest average price was in the North East at £151,085. Of the English regions, only the East, London, South East and the South West had average prices above the UK average.

Buyers
The UK house price inflation rate for first time buyers fell from 9.8 per cent in November to 9.5 per cent in December. There was a rise of 0.5 per cent in the prices index between November and December in the properties bought by first time buyers compared with a larger rise of 0.8 per cent over the same period last year.

The inflation rate for former owner occupiers fell from 9.7 per cent in November to 9.0 per cent in December. There was a rise of 0.4 per cent in the prices index between November and December in the roperties bought by former owner occupiers, compared with a rise of 1.0 per cent over the same period last year.

The average price paid by first time buyers across the whole of the UK was £166,734 in December, while the average price paid by former owner occupiers was £245,522.