House price inflation rose to an annual rate of 12.6% in March from 10.5% in February, according to government figures just released. Government supplied figures lag the majority of other indices because they are based upon actual prices transacted.

The Office of the Deputy Prime Minister said the mix-adjusted average house price in March stood at £183,346 compared with £179,491 in the prior month. (Not seasonally adjusted).

Annual house price inflation in London was 9.8% in March 2005, up from 7.1%t in February 2005.

All the home countries saw a rise in annual inflation in March. The inflation rate in England rose from 9.8% in February to 12.0% in March. Over the same period, in Wales the rate rose from 18.1% to 22.0%; in Scotland the rate rose from 15.5% to 16.1%; and in Northern Ireland the rise was from 11.5% to 15.8%.

The rise in house price inflation for England in March, was matched by rises in all regions except Yorkshire and the Humber. The highest inflation rates were in the north in North East (19.4%), North West (19.2%) and Yorkshire and the Humber (16.9%). Inflation rates in the East and West Midlands were both 14.9%, with 11.2% in the South West. Inflation was just below 10% in the East and London and lowest in the South East, where inflation rose from 5.0% in February to 8.1% in March - due to a rise in prices between February and March this year compared with a fall in the same period last year.

Mix-adjusted average house prices in March were £193,190 in England, £142,923 in Wales, £118,927 in Scotland and £124,223 in Northern Ireland.

House price inflation by type of buyer

The UK house price inflation rate for first-time buyers rose from 15.4% in February to 18.3% in March. This was due to a rise of 2.5% in prices between February and March in the properties bought by first-time buyers, compared with a fall of less than 0.1% seen over the same period last year.

The inflation rate for former owner-occupiers rose from 8.7% in February to 10.5% in March. This was due to a rise of 2.0% in prices between February and March in the properties bought by former owner-occupiers, compared with a smaller rise of 0.3% over the same period last year.

The average price paid by first time buyers across the whole of the UK was £149,470 in March, while the average price paid by former owner-occupiers was £198,681.