The mix-adjusted average house price in the UK in January 2008 stood at £221,758, up from £218,007 in December 2007 according to official Government figures.

The UK house price inflation rate fell from 8.4 per cent in December 2007 to 8.0 per cent in January 2008. Between December and January there was a rise of 1.7 per cent in the prices index of properties bought compared with a larger rise of 2.1 per cent over the same period last year resulting in a decrease in the annual inflation rate.

The rise in UK prices between December and January can be attributed to increases in average prices for detached houses (4.3 per cent), flats (1.3 per cent), bungalows (1.1 per cent), semi-detached houses (0.9 per cent) and terraced houses (0.5 per cent).

England, Scotland and Northern Ireland saw decreases in house price inflation in January 2008. In England annual house price inflation fell from 8.1 per cent in December to 7.9 per cent in January; In Scotland annual house price inflation fell from 11.1 per cent in December to 9.8 per cent in January; In Northern Ireland annual house price inflation fell from 12.6 per cent in December to 8.4 per cent in January. Wales, though, saw an increase in house price inflation from 5.9 per cent in December to 7.4 per cent in January.

The highest inflation rate was in London (13.8 percent) followed by the South East (8.8 per cent), and the East (6.7 per cent). Inflation rates were lower in the South West (6.3 per cent), North East (5.7 per cent) and Yorkshire and the Humber (5.5 per cent). The lowest inflation rates were in the East Midlands (5.4 per cent), the North West (4.8 per cent) and the West Midlands (3.2 per cent).

Regional House Prices
Communities and Local Government found that mix-adjusted average house prices in January were £229,891 in England, £171,830 in Wales, £164,750 in Scotland and £222,595 in Northern Ireland.

The English region with the highest average house price in January remains London at £351,096. The lowest average price was in the North East at £151,810.

Of the English regions, only the East, London, South East and the South West had average prices above the UK average.

Types of buyer
UK house price inflation rate for first time buyers fell from 9.3 per cent in December to 7.6 per cent in January. There was a rise of 0.5 per cent in the prices index between December and January in the properties bought by first time buyers.

The inflation rate for former owner occupiers rose from 8.1 per cent in December to 8.2 per cent in January. There was a rise of 2.1 per cent in the prices index between December and January in the properties bought by former owner occupiers.

The average price paid by first time buyers across the whole of the UK was £167,193 in January, while the average price paid by former owner occupiers was £248,527.