Average house price value falls

The average house price fell a fraction in February compared with the previous month, according to figures issued by the government, despite a continuing climb in the value of annual house price inflation.

Details of the Department for Communities and Local Government (DCLG) House Price Index reveal the average house price dropped 0.1% from £205,399 in January 2007 to £205,102 in February.

According the DCLG, the small drop the fall in prices is seen mainly in bungalows - down 1,1% - along with terraced and detached houses – being 0.5% lower in February – but these valued were offset by a rise in the value of flats - up 0.9% - and semi-detached homes which gained 0.1%.

Inflation rates were also lower in Yorkshire and the Humber (8.9%), and North West (8.3%) as well as in the West and East Midlands - down 7.9% and 6.8% respectively – while house price inflation climbed 16.7% in London followed by 12% in the East, 10.8% in the South East, 9.5% in the South West and 9.4% in the North East.

At the same time, however, the annual rate of house price inflation continued to climb from 10.9% in January to 12.1% in February 2007, with London seeing a significant jump from 13.2% to 16.9%.

The average house price in London is now reported to be t £310,245 while the lowest average price was in the North East was £144,213 in February.

And the average price paid by first time buyers across the whole of the UK was £156,031 in February, while the average price paid by former owner occupiers was £229,176.