UK property prices marginally dropped in the last month of 2005 while price inflation grew, according to a new house price index.

UK property prices marginally dropped in the last month of 2005 while price inflation grew, according to a new house price index.

The Office of the Deputy Prime Minister (ODPM) reveals that average house prices in December 2005 depreciated from £185,848 in November 2005 to £185,788 in December of last year.

Average prices for bungalows and semi-detached houses fell by one per cent and 0.9 per cent respectively, while terraced houses rose by 1.3 per cent.

ODPM figures suggest that London house prices remained the highest in the UK, with an average value £268,517. The north-east, at £135,968, was reported to have the lowest price.

Only properties in the east, London, south-east and the south-west had prices above the UK average.

House price inflation rose on average from 2.2 per cent to 2.9 per cent in the same period. While inflation rises were experienced in England and Scotland, rates fell in Wales and Northern Ireland.