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A 7.2% price jump in London and improvements in the South East and East Midlands helped drive a nationwide 2.3% year-on-year price gain for residential real estate in the United Kingdom (UK). The gains were offset by declines in Scotland and Northern Ireland, according to the Office of National Statistics. The prices remained unchanged when adjusted on a seasonal basis and London remained the region with the highest property prices. New dwellings saw the biggest increase in price, while pre-owned real estate experienced only incremental gains. For more on this continue reading the following article from Property Wire.

It is not all bad news for UK house prices as the latest figures from the Office of National Statistics published today (Tuesday 17 July) show that in the 12 months to May 2012 they increased by 2.3%.

This continues the pattern seen since May 2010, with house prices relatively stable across most of the UK although falling in Northern Ireland.

The year on year increase reflected growth of 2.6% in England and 3.5% in Wales, which was offset by declines in Scotland and Northern Ireland of 1% and 10.3% respectively.

Annual house price increases in England were driven by a 7.2% rise in London as well as increases in the South East and East Midlands of 3.4% and 2.3% respectively. The largest decreases in England were 1.6% in the North West and 1.2% in the West Midlands.

On a seasonally adjusted basis, UK house prices remain unchanged between April and May 2012.

Prices of new dwellings rose by 6.2% while the price of pre-owned dwellings increased by 2% year on year.
In May 2012 prices paid by first time buyers were 2.8% higher on average than in May 2011. For existing owners prices increased by 2.1% for the same period.

This means that the average mix adjusted house price in the UK in May 2012 was £228,000 while excluding London and the South East, the average UK mix adjusted house price was £183,000.

On a regional basis the average mix adjusted house prices was £237,000 in England, £154,000 in Wales, £132,000 in Northern Ireland and £177,000 in Scotland.

London continued to be the English region with the highest average house price at £388,000. The North East had the lowest average house price at £143,000. London, the South East and the East of England all had prices higher than the UK average price of £228,000.

This article was republished with permission from Property Wire.