UK annual house price inflation in July 2005 was 4.0 per cent, down from 5.0 per cent in June 2005, according to the latest data from the Office of the Deputy Prime Minister.

Annual house price inflation in London was 0.9 per cent in July 2005, down from 1.7 per cent in June 2005.

The mix-adjusted average house price in the UK in July 2005 stood at £186,207, up from £184,162 in June 2005 (not seasonally adjusted).

The 3-month average UK annual house price inflation rate to July 2005 was 5.0 per cent and 1.4 per cent in London.

House price inflation: regional

All the home countries, except Northern Ireland, saw a fall in annual inflation in July. The inflation rate in England fell from 4.1 per cent in June to 3.1 per cent in July. Over the same period, in Wales the rate fell from 10.8 per cent to 7.6 per cent; in Scotland the rate fell from 14.0 per cent to 12.0 per cent; and in Northern Ireland the rate rose from 14.2 per cent to 15.9 per cent.

House price inflation fell in all English regions, except West Midlands, between June and July. The highest inflation rates in England remain in the north, in North West (7.3 per cent), Yorkshire & the Humber (7.1 per cent), North East (6.5 per cent). The inflation rate in West Midlands is currently 5.7 per cent. Inflation rates in East Midlands and the East are 3.4 and 3.1 per cent respectively. Inflation in the South West and South East regions were 1.5 and 1.3 per cent respectively. The region with the lowest inflation rate remains London, where inflation fell from 1.7 per cent in June to 0.9 per cent in July.

House prices: regional

Mix-adjusted average house prices in July were £195,191 in England, £147,184 in Wales, £127,945 in Scotland and £133,849 in Northern Ireland.

The English region with the highest average house price in July remains London at £270,285. The region with the lowest average price was the North East at £134,034.

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 from 6.7 per cent in June to 6.0 per cent in July. This was due to a rise of only 1.9 per cent in prices between June and July in the properties bought by first time buyers, compared with a rise of 2.5 per cent seen over the same period last year.

The inflation rate for former owner-occupiers fell from 4.4 per cent in June to 3.3 per cent in July. This was due to a rise of only 0.8 per cent in prices between June and July in the properties bought by former owner occupiers, compared with a rise of 2.0 per cent over the same period last year.

The average price paid by first time buyers across the whole of the UK was £153,168 in July, while the average price paid by former owner-occupiers was £201,163.

The mix-adjusted house price series are produced by the Office of the Deputy Prime Minister and are being published on an experimental basis. Development of the methodology underpinning the indices has been undertaken in conjunction with the Office for National Statistics. The index will undergo a quality audit during 2006 with a view to gaining accreditation as a 'National Statistic'.