Average UK home 'now costs £198k'

Posted: 09 Oct 2006 14:56:20 GMT

            Property News - Average UK home 'now costs £198k'

The average price of a house in the UK rose to at £197,631 in August 2006, up from £194,454 in July.

The average price of a house in the UK stood at £197,631 in August this year, official figures show.

The mix-adjusted House Price Index for August 2006 from the Department of Communities and Local Government rose from £194,454 in July.

Annual house price inflation rose to 7.7 per cent in August, up from six per cent in July 2006, suggesting that an increase in interest rates in early August failed to filter through to the property market.

The UK annual house price inflation rate for the quarter to August 2006 was 6.3 per cent, while house prices rose by 1.6 per cent between July and August, with particularly strong increases in the average prices for bungalows and detached houses.

House price inflation was higher in London and the south west than in other regions of the UK, at 7.9 per cent, indicating that the property market is strengthening. House price inflation rose in England, Scotland and Northern Ireland during August and fell slightly in Wales.

Commenting on the data, RICS chief economist, Milan Khatri, said: "With the economy growing firmly and households viewing their finances as strong, the housing market will remain robust in the coming months."

Property market experts are now predicting a further increase in the base rate of interest by the Bank of England by the end of this year as economists attempt to cool the housing market.

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