House prices in the UK fell slightly in October, according official figures out this week. The mix-adjusted average house price in the UK in October 2006 stood at £197,987, down from £198,552 in September 2006.

The annual rate of house price inflation continued to rise however. UK annual house price inflation in October was 8.6%, up from 8.0% in September 2006, according to figures from the Department for Communities & Local Government.

The figures lag other indices somewhat because they are based on completed house purchase data.

Annual house price inflation in London was 10.6% in October, up from 9.0% in September.

The UK annual house price inflation rate for the 3 months to October 2006 was 8.0% and 9.1% in London.

The main reason for the fall in the average price being paid was due almost entirely to a drop in the price of detached houses, which fell by 2.1%.

While the UK house price inflation rate rose in October, between September and October there was a fall of 0.3% in the prices of properties bought, However, there was a larger fall of 0.9% over the same period last year resulting in an increase in the inflation rate.

In the home countries in October, England, Scotland and Northern Ireland saw increases in inflation, while inflation fell in Wales. The inflation rate in England rose from 7.2% in September to 7.9% in October; the inflation rate in Scotland rose from 12.9% to 13.6%; in Northern Ireland the rate rose from 23.6% to 31.6%. In Wales the rate fell from 10.3% to 7.0%.

House price inflation rose in six of the English regions and fell in the North East, Yorkshire and the Humber and the West Midlands. The highest inflation rate was in London (10.6%) followed by Yorkshire and the Humber (8.4%), South West (8.2%) and the North West (7.9%). Inflation rates were lower in the East (7.1%), the South East (6.8%), North East and West Midlands (both 6.7%). The lowest inflation rate was in the East Midlands (5.4%).

House prices: regional

Mix-adjusted average house prices in October were £205,688 in England, £158,105 in Wales, £145,315 in Scotland and £175,991 in Northern Ireland.

The English region with the highest average house price in October remains London at £288,593. The lowest average price was in the North East at £143,252.

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 rose from 7.7% in September to 8.5% in October. There was a rise of 0.3% in prices between September and October in the properties bought by first-time buyers compared with a fall of 0.4% over the same period last year.

The inflation rate for former owner-occupiers rose from 8.0% in September to 8.7% in October. Although between September and October there was a fall of 0.5% in the prices of properties bought by former owner-occupiers, there was a larger fall of 1.1% over the same period last year.

The average price paid by first-time buyers across the whole of the UK was £153,083 in October, while the average price paid by former owner-occupiers was £217,141.