Average house prices fell during February show figures from the Office of the Deputy Prime Minister yesterday, but the fall was the result of a seasonal slowdown. Other reporting bodies often adjust their figures to remove seasonal movements.

The mix-adjusted average house price in the UK in February 2004 stood at £160,937, down from £162,559 in January (not seasonally adjusted).

UK annual house price inflation in February 2004 was 9.8 per cent, up from 9.7 per cent in January.

The new mix-adjusted house price series are being produced by the government on an experimental basis. The new index will undergo a quality audit during 2004 with a view of gaining accreditation as a 'National Statistic'.

Annual house price inflation in London was 5.7 per cent in February 2004, up from 5.0 per cent in January.

House price inflation: regional

Apart from England, all the home countries saw a rise in annual inflation. The rise was strongest in Scotland, up from 23.3 per cent in January to 26.2 per cent, and lowest in Northern Ireland, up from 6.1 per cent to 6.5 per cent. Annual inflation in Wales was 21.7 per cent, up from 19.3 per cent in January.

Annual inflation in England fell from 8.8 per cent in January to 8.7 per cent in February. However, only four regions saw a decrease in inflation, with the largest fall seen in the South West from 7.9 per cent to 4.4 per cent.

The East Midlands saw the largest increase from 10.5 per cent to 12.3 per cent. House price inflation in the North East (26.8 per cent), the North West (19.6 per cent) and Yorkshire and the Humber (18.7 per cent), remain substantially higher than in the rest of England. The South East and South West had the lowest rates of inflation, both at 4.4 per cent.

House prices: regional

Mix-adjusted average house prices in February were £172,825 in England, £119,136 in Wales, £99,090 in Scotland and £102,697 in Northern Ireland.

The English region with the highest average house price in February was London at £243,231. The lowest average price was in the North East at £107,449.

Only the East, London, South East and the South West had average prices above the UK average.

House price inflation: type of buyer

The UK house price inflation rate for first time buyers fell slightly to 12.0 per cent in February from 12.1 per cent in January.
s is due to a decrease in prices of 2.4 per cent between January and February, compared with a fall of 2.3 per cent over the same period last year. In contrast, the inflation rate for former owner occupiers remained unchanged at 8.7 per cent in February.

The average house price in the UK for first time buyers stood at £125,322 in February, while the average price paid by former owner occupiers stood at £180,235.