UK house prices still rising - govt figures

UK house prices rose 9.7% in January, the Office of the Deputy Prime Minister (ODPM) said today, up from 8.3% the previous month.

The average UK house cost £163,645 (€244,400) in January, up from £162,654 (€242,900) in December. Inflation for first-time buyers rose to 12.1% in January from 6% the previous month.

The areas showing the biggest gains were Scotland, Wales, the North East, the North West and Yorkshire. Annual house price inflation in London, which had recently declined, rose to 5%, up from 3.8% in December.

The UK government started producing its own monthly house price survey in 2003, using information from about 50 lenders.The index does not contain information on cash purchases, which account for about a quarter of the market.