Latest statistics released by the Office of the Deputy Prime Minister (ODPM) show that home prices have shown a 4% annual increase in July 2005, which is lower than statistics published in June 2005, when annual inflation was said to equal 5%. This means that home prices are showing a lower rate of increase in comparison to a month earlier.The Average Price of a home in UK equalled £186,207 in July 2005 compared to £184,162 in June 2005. The largest increase in Property Prices were attributed to detached homes with a 2.1% increase, followed by a 1.3% increase in bungalow prices. Good news for owners of those properties, however not so good for those wishing to buy them.

Regional Analysis of House Prices

All countries except Northern Ireland experienced reduction in annual house price inflation. All rates presented below are annually adjusted. Home prices in England increased by 3.1% in July, which is 1% lower than the previous month. Wales property prices rose by 7.6%, compared to 10.8% calculated a month earlier. Annual house price inflation in Scotland was 12%, which is also down from 14.0%. However, Northern Ireland was an exception, where the rate of property prices increased from 14.2% to 15.9%.

Regional Average House Price

The average price of a home in England was £195,191 in July 2005. Average price in Wales was £147,184; in Scotland £127,945, and finally £133,849 in Northern Ireland.Not surprisingly, statistics also showed that London remains the region with the highest average property prices, equalling to £250,285 in July, 2005.

Analysis of Home Buyers

First time home buyers across the UK paid an average price of £153,168 for a property in July. Former property owners paid a relatively higher price for a property, averaging out at £201,163.