Government launches house price survey

Monday, 15 September 2003 12:00 AM

The Government has released a survey of house prices which aims to add more clarity to the market.

The figures from the Office of the Deputy Prime Minister show that average house prices across the UK rose by 14.6% in July compared to 13.4% in June.

The mix-adjusted average house price in the UK in July 2003 stood at £156,273, up from £153,605 in June, and up from £138,042 one year ago.

The Government's survey differs from those published by Halifax or Nationwide as it measures the actual price paid for the property rather that the price that was initially agreed to (the approval price).

Approval prices can change as people move towards the completion of the transaction and the ODPM therefore believes that this new survey will be more accurate.

According to the survey, the housing market is showing signs of a recovery with price increases and first time buyers returning to the market. In May of this year the annual house price inflation fell from 17.8% to 13.4% in June, but the rate recovered to14.6% for the year to July.

The Government's figures suggest that it was first time buyers that underpinned prices in July, with the price they paid rising from an average of £114,699 in June to £120,830 in July.

The survey revealed that the UK house price inflation rate for first time buyers rose sharply to 11.3% in July from 5.4% in the previous month; whereas the inflation rate for former owner-occupiers fell slightly from 17.7% in June to 16.4% in July.

However, the Government's figures were contradicted by those of property website, Rightmove, which found that house prices fell at their fastest rate for 18 months.

Rightmove recorded an annual house price inflation of 9.1% falling from 12.4% in the previous month. Its survey showed that prices fell by 0.6% in the month to 6th September, the first fall since January.

Surveys by Halifax and Nationwide survey also revealed slight rises in house prices. Both of their most recent surveys revealed growth of just over 1% in August.

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