UK annual house price inflation in December 2006 was 9.9%, up from 8.8% in November 2006, government data released today shows.

The latest increase follows a steady stream of increases since July and brings the mix-adjusted average house price in the UK to £201,090, up from £199,238 in November 2006 (not seasonally adjusted).

Annual house price inflation in London was 11.8% in December 2006, up from 9.9% in November 2006, but this statistic has had a slightly bumpier ride.

The rise in UK prices between November and December can be attributed to rises in average prices for flats (2.6%), bungalows (2.2%), semi-detached houses (1.6%) and terraced houses (0.8%). The price of detached houses fell slightly (0.8%).

In the home countries in December, England, Scotland and Northern Ireland saw increases in inflation, while inflation fell in Wales. The inflation rate in England rose from 7.8% in November to 8.9% in December; the inflation rate in Scotland rose from 13.4% to 15.2%; in Northern Ireland the rate rose from 37.2% to 39.9%. In Wales the rate fell from 10.2% to 9.1%.

House price inflation rose in six of the English regions (North East, East Midlands, West Midlands, East, London and South East) and fell in two regions (North West and South West) and remained the same in one (Yorkshire and the Humber).

The highest inflation rate was in London (11.8%) followed by the Yorkshire and the Humber (9.9%), South East (8.7%) and North East (8.4%). Inflation rates were lower in the East (8.1%), the West Midlands (7.8%), South West (7.7%) and North West (7.4%). The lowest inflation rate was in the East Midlands (6.1%).

House prices: regional

Mix-adjusted average house prices in December were £208,525 in England, £160,060 in Wales, £147,687 in Scotland and £191,505 in Northern Ireland.

The English region with the highest average house price in December remains London at £296,160. The lowest average price was in the North East at £146,183.

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 8.9% in November to 9.4% in December. There was a rise of 0.8% in prices between November and December in the properties bought by first-time buyers compared with a rise of 0.3% over the same period last year.

The inflation rate for former owner-occupiers rose from 8.8% in November to 10.0% in December. There was a rise of 1.0% in prices between November and December in the properties bought by former owner-occupiers, compared with a fall of less than 0.1% over the same period last year.

The average price paid by first-time buyers across the whole of the UK was £155,120 in December, while the average price paid by former-owner occupiers was £220,699.