The government’s November house price index released today shows a continuation of the downward movement of annual house price inflation to 9.7 per cent, down from 12.1 per cent in October.

Annual house price inflation in London was 5.2 per cent in November 2003, down from 6.2 per cent in October.

House price reversal is a blip

The mix-adjusted average house price in the UK in November 2003 stood at £159,480, down from £161,567 in October. This appears to indicate a reversal in house prices but the ODPM figures are not seasonally adjusted and October’s figure was seasonally high. Compared against September’s price of £158,576 today’s mix-adjusted figure is still increasing.

Countries and regions

All four home countries saw a decline in annual inflation, although inflation in Wales, at 19.6 per cent, and in Scotland, at 16.1 per cent, remains higher than in England.

Annual inflation in England fell from 11.6 per cent in October to 9.2 per cent in November, and this decrease was reflected in all the English regions.

Average inflation in the North East, at 19.6 per cent and the North West at 17.6 per cent, remain substantially higher than in the rest of England. By contrast, inflation in London, the East, the South East and South West were all under 10 per cent, with the lowest rate shown in London, at 5.2 per cent.

Type of buyer

The UK house price inflation rate for first-time buyers fell to 7.3 per cent in November from 10.5 per cent in October. The inflation rate for former owner occupiers also fell, from 13.1 per cent in October to 11.1 per cent in November. This is the lowest rate seen this year, and compares with a rate of 25.8 per cent seen in April.

The average house price in the UK for first time buyers stood at £124,346 in November, while the average price paid by former owner occupiers stood at £183,103.