House prices fell in February – ODPM

The mix-adjusted average house price stood at £183,224 in February, down from £185,404 in January, according to the latest figures from the Office of the Deputy Prime Minister (ODPM).

The house price inflation rate fell from 4.3% in January to 3.6% in February, while prices fell 1.2% between January and February compared with a fall of 0.5% over the same period the previous year.

The ODPM says the fall in prices between January and February can be attributed to falls in average prices for all property types, in particular flats (4.6%), detached properties (1.2%) and bungalows (1.1%).

In the home countries, the inflation rate in England fell from 3.7% in January to 2.8% in February, while the rate in Wales rose from 6.4% to 6.5%, in Scotland from 10.5% to 11.5% and in Northern Ireland from 12.5% to 15.8%.

House price inflation fell in six of the English regions but fell in the other three. The highest inflation rates remain in the north in Yorkshire and the Humber (8.6%), North West (7.8%) and in North East (7.0%).

Inflation rates were much lower in other parts of England: in West Midlands (3.5%), South East (2.0%), London (1.9%), East Midlands (1.7%) and South West (1.3%).

The inflation rate for the East fell below zero because prices fell between January and February by 2.9% compared with a smaller fall of 0.2% in the same period last year.

The House Price Index also reveals mix-adjusted house prices in February were £191,563 in England, £148,562 in Wales, £129,020 in Scotland and £138,032 in Northern Ireland.

The English region with the highest average house price in February remains London at £263,222, while the lowest was in the North East at £133,348.

Meanwhile, the house price inflation rate for first time buyers (FTBs) fell from 5.2% in January to 4.1% in February because of a fall of 1.2% in prices between January and February in the properties bought by FTBs compared with a smaller fall of 0.1% over the same period last year.

The inflation rate for former owner occupiers fell from 4.0% in January to 3.4% in February because of a 1.2% fall in prices of properties bought by former owner occupiers compared with a smaller fall of 0.7% last year.

The average price paid by FTBs across the whole of the UK was £141,069 in February, while the average price paid by former owner occupiers was £201,206.

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