WP-Paginate not fully working with custom post types

Hi all

Got a bit of a problem that I can’t seem to work out. I’m using WP-Paginate to paginate my custom post types however, when I click on page 2 I get the same results.

This is my code

<?php get_header(); ?>

<div class="grid_16">
	<div id="page-content" class="clearfix">
		<div class="content-padding">
			<?php if ( have_posts() ) : ?>
				<div class="">
					<h1 class="page-title">
						<?php
							$term = get_term_by( 'slug', get_query_var( 'unit_area' ), get_query_var( 'taxonomy' ) );
							echo $term->name . ' Units';
						?>
					</h1>
				</div>
				<?php $args = array( 'taxonomy' => 'unit_area', 'term' => $term->slug ); ?>
				<?php query_posts( $args ); ?>

				<?php while ( have_posts() ) : the_post(); ?>
					<?php get_template_part( 'content', 'unit_area' ); ?>
				<?php endwhile; ?>

			<?php else : ?>

				<div id="post-0" class="post no-results not-found">
					<div class="entry-header">
						<h1 class="entry-title"><?php _e( 'Nothing Found', 'twentyeleven' ); ?></h1>
					</div><!-- .entry-header -->

					<div class="entry-content">
						<p><?php _e( 'Apologies, but no results were found for the requested archive. Perhaps searching will help find a related post.', 'twentyeleven' ); ?></p>
						<?php get_search_form(); ?>
					</div><!-- .entry-content -->
				</div><!-- #post-0 -->

			<?php endif; ?>

			<div id="page-nav">
				<?php if(function_exists('wp_paginate')) { wp_paginate(); } ?>
			</div>

		</div><!-- .content-padding -->
	</div><!-- #page-content -->
</div><!-- .grid_16 -->

Can someone assist me please?