House Price Index June 2006

* The mix-adjusted average house price in the UK in June 2006 stood at
190,883, up from 190,065 in May 2006 (not seasonally adjusted).

* UK annual house price inflation in June 2006 was 5.2 per cent, down
from 5.6 per cent in May 2006. Annual house price inflation in London
was 5.8 per cent in June 2006, down from 7.0 per cent in May 2006.

* The UK annual house price inflation rate for the 3 months to June
2006 was 5.3 per cent, and 6.5 per cent in London.


UK LONDON UK
All Dwellings All Dwellings All Dwellings

IndexFeb % change IndexFeb %
02 = 100 over 12 02 = 100 change
months over 12
months
Not
seasonally
adjusted
2006 Jan 155.1 4.1 136.1 5.0 185,112
Feb 153.2 3.4 132.5 1.5 182,925
Mar 156.2 3.3 138.4 4.0 186,519
Apr R 157.6 5.0 140.0 6.7 188,095
May R 159.2 5.6 141.0 7.0 190,065
Jun 159.9 5.2 141.2 5.8 190,883








HOUSE PRICE INFLATION: REGIONAL

The UK house price inflation rate fell from 5.6 per cent in May 2006 to
5.2 per cent in June 2006. Although prices rose by 0.4 per cent between
May and June, there was a larger rise of 0.8 per cent over the same
period last year.

The small rise in UK prices between May and June can be attributed to
small rises in average prices for semi detached houses (0.9 per cent),
and terraced houses (0.7per cent).

In the home countries in June, England and Scotland saw falls in
inflation, while inflation rose in Wales and Northern Ireland. The inflation
rate in England fell from 5.1 per cent in May to 4.6 per cent in June;
the inflation rate in Scotland fell from 9.7 per cent to 8.5 per cent.
In Northern Ireland the rate rose from 18.0 per cent to 18.5 per cent;
in Wales the rate rose from 4.8 per cent to 8.2 per cent.

House price inflation fell in seven of the English regions and rose in
two. The highest inflation rate was in Yorkshire and the Humber (6.7
per cent) followed by London (5.8 per cent), North East (5.5 per cent)
and South West (5.0 per cent). Inflation rates were lower in other parts
of England, in North West (4.9 per cent), West Midlands (4.4 per cent)
and South East (4.3 per cent). Inflation rates were lowest in East (2.8
per cent) and East Midlands (1.9 per cent).

HOUSE PRICES: REGIONAL

Mix-adjusted average house prices in June were 198,952 in England,
155,041 in Wales, 138,672 in Scotland and 149,784 in Northern Ireland.

The English region with the highest average house price in May remains
London at 279,763. The lowest average price was in the North East at
138,998.

Only the East, London, South East and the South West had average prices
above the UK average.

HOUSE PRICE INFLATION: TYPE OF BUYER

The UK house price inflation rate for first time buyers rose from 6.3
per cent in May to 6.8 per cent in June. This was due to a rise of 0.5
per cent in prices between May and June in the properties bought by
first time buyers compared with a smaller rise of less than 0.1 per cent
over the same period last year.

The inflation rate for former owner occupiers fell from 5.4 per cent in
May to 4.7 per cent in June. Although there was a rise of 0.4 per cent
in prices between May and June in the properties bought by former owner
occupiers, this was less than the larger rise of 1.1 per cent over the
same period last year.

The average price paid by first time buyers across the whole of the UK
was 149,215 in May, while the average price paid by former owner
occupiers was 208,657.

TABLES

Tables are from January 2004 to June 2006.

A1: Mix-adjusted house price index and annual inflation by region.

A2: Mix-adjusted average house prices by region.

A3: Mix-adjusted house price index and annual inflation by type of
buyer, UK.

A4: Mix-adjusted average house prices by type of buyer, UK.

This month we received some additional data for April and May 2006.
This is largely the result of a small number of lenders supplying data
quarterly. This means that previously published April and May 2006 figures
have been revised. Overall, the difference in the published prices is
14 (0.0%) for May and -195 (-0.1%) for April. Larger revisions have
occurred in some regions and in type of buyer prices. The change in
prices is not an error but the result of an additional data.

Additional tables and earlier monthly data can be accessed in the 'Live
tables' section (housing market) at
http://www.communities.gov.uk/housingstatistics