Seasonally adjusted house prices increased over the month (0.6 per cent) compared with the 0.4 per cent monthly increase observed in August 2010. The seasonally adjusted index was 5.5 per cent below the recent peak of April 2008 and 9.9 per cent above the recent trough of April 2009.
Country
During the year to August average house prices decreased in England (-1.2 per cent), Wales (-0.3 per cent), Scotland (-1.5 per cent) and Northern Ireland (-4.3 per cent).
Region
Average house prices decreased in eight of the nine English regions over the year to August 2011. The largest decrease was in the North East (-4.8 per cent) while the smallest was in the East (-1.5 per cent).
London registered an annual house price increase (3.2 per cent). Over the month to August there were average price rises in eight regions, ranging from 0.1 per cent in London and the South East to 3.2 per cent in the Yorkshire and the Humber.
There was an average monthly price fall of 1.2 per cent in the North West.
Countries and Regions
Average mix-adjusted house prices in August stood at £216,196 in England, £144,163 in Northern Ireland, £163,790 in Scotland and £149,807 in Wales. London remains the English region with the highest average house price (£347,505). The North East has the lowest average price at £133,460.
In England, southern regions including the East of England, London, the South East and South West all had average prices above the UK average in August.
Excluding London and the South East, the average UK price in August was £171,640, a decrease of 2.6 per cent over the year.
Type of Buyer
The average price for properties bought by first time buyers decreased by 1.8 per cent to £153,158 over the year to August 2011, compared to an annual decrease of 0.5 per cent in July. During August prices paid by first time buyers fell by 0.3 per cent on average, compared to a 1.1 per cent monthly increase in August last year.
The average price of properties bought by former owner occupiers decreased by 1.1 per cent to £242,579 over the year to August 2011, compared to an annual decrease of 1.9 per cent in July. During August prices paid by former owner occupiers rose by 1.0 per cent on average, compared to a 0.2 per cent increase in August last year.
New and pre-owned dwellings
The average price for pre-owned dwellings decreased by 2 per cent to £209,249 over the year to August, compared to an annual decrease of 2.1 per cent in July. During August 2011 prices paid for pre-owned dwellings rose by 0.5 per cent on average, compared to a 0.4 monthly increase during the same period last year.
The average price paid for new properties increased by 9.2 per cent to £198,687 over the year to August, compared to an annual increase of 6.7 per cent in July.
During August 2011 prices paid for new properties decreased by 0.6 per cent on average, compared to a monthly fall of 2.8 per cent in August last year. Month on month price changes in new build properties tend to be more volatile, reflecting low transaction levels.
Nick Hopkinson, Director of property company, PPR Estates, comments:
“The latest Government analysis shows average house prices falling nationally over the last year by around 2%. This headline data is very misleading as it includes the millionaire enclaves in London where prices have boomed due to cash-rich foreign investors buying to protect their wealth.
"New-build house prices are only up because developers are starting to focus on larger, more expensive family homes more and prices have recovered partially from the catastrophic collapse following the Credit Crunch.
"Most new-build city centre flats are worth 20% less than they were three years ago.
“The hidden reality behind the national average numbers is that many properties outside London have seen prices fall by over 10% in the last year.
"With the current Euro debt uncertainties, the wider economy flirting with recession again and inflation squeezing the Great British middle classes ‘till the pips squeak’, it’s difficult to see any real prospects of house price growth in the foreseeable future for most of us.”
Peter Maskell, director of the Sussex-based estate agents Brock Taylor, commented:
"For three months in a row, these government figures have shown average house prices inching upwards. But talk of a recovery risks sounding rather premature. Average prices still have some way to go to regain the levels of a year ago.
"Nevertheless there have been flickers of life in some of the regional markets which have suffered most - eight of the nine registered month on month price increases. Here in Sussex we saw a busy August, but such a modest uptick in prices is unlikely to be a sign of a resurgent market - it's more down to the current meagre levels of supply.
"So while this is likely to prop up prices in the short term, it cannot be a long term model for the industry. And while average prices paid by first time buyers are now lower than they were a year ago, first timers are still a very difficult market to appeal to.
"Our experience is that many of the lower priced properties which once were the domain of first timers are once again being snapped up by investors looking for a better return than they can get on a savings account at the bank."
