CLG: House prices up 1.7% in January

The average price for a property in the UK increased by 1.7 per cent between December 2007 and January 2008, according to the latest house price index released by the Department for Communities and Local Government (CLG).

The rise can be attributed to increases in the average price of detached houses, which went up 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).

However, this monthly figure represents a reduction on the 2.1 per cent rise recorded over the same period a year earlier.

Consequently annual house price growth across the country has fallen from 8.4 per cent to eight per cent.

This fall was common to England, Scotland and Northern Ireland – all of which saw decreases in annual house price inflation.

In England, annual house price inflation fell from 8.1 per cent in December to 7.9 per cent in January; in Scotland the annual figure fell from 11.1 per cent to 9.8 per cent, while Northern Ireland saw a dip from 12.6 to 8.4 per cent.

Wales, though, saw an increase in annual house price inflation from 5.9 per cent in December to 7.4 per cent in January.

Specific to England, the highest inflation rate was in London (13.8 per cent) followed by the south-east (8.8 per cent), and the east (6.7 per cent).

In contrast inflation rates were lowest in the East Midlands (5.4 per cent), the north-west (4.8 per cent) and the West Midlands (3.2 per cent).

The research also finds in the average price for a property in England during January was £229,891, whereas it was slightly lower in Wales (£171,830), Scotland (£164,750) and in Northern Ireland (£222,595).

The English region with the highest average house price in January remained London at £351,096, while the lowest average price was recorded in the north, at £151,810.