According to Communities and Local Government, the UK house price inflation rate rose from 12.1% in June 2007 to 12.4% in July 2007.

Between June and July, there was a rise of 2% in the prices index of properties bought compared with a smaller rise of 1.7% over the same period last year resulting in an increase in the inflation rate.

The rise in UK prices between June and July can be attributed to increases in average prices for detached houses (2.4%), bungalows (2.1%), terraced houses (2%) and flats and semi-detached houses (1.7% each).

Northern Ireland saw a decrease in inflation in July 2007 with annual house price inflation falling from 55.9% in June to 46.8% in July. In Wales, the inflation rate stayed the same at 7.6% throughout June and July. In England, annual house price inflation rose from 11% in June to 11.5% in July and in Scotland annual house price inflation in July was 16.4% compared with 15.6% in June.

House price inflation rose in five of the English regions, fell in three regions and stayed the same in one region. The highest inflation rate was in London (19.2%), followed by the South East (11.9%), and the South West (11.3%). Inflation rates were lower in the East (9.6%), North East (8.5%) and Yorkshire and the Humber (8.4%). The lowest inflation rates were in the North West (7.6%) and West Midlands (7.3%) and the East Midlands (6.4%).