Home Asking Price Index, April 2011: home prices fall further behind inflation
Asking prices in England and Wales rose 0.4% month-on-month but remained 0.9% lower than a year earlier, as time on market fell to 133 days.
This is the April 2011 edition of the Home Asking Price Index, released on 12 April 2011, under the headline:
Home Prices Fall Further Behind Inflation
The headlines and summary below are the report's own words, with the key figures as it published them, followed by the report's charts and regional tables as printed.
Headlines
- The mix-adjusted average Asking Price for homes on the market in England and Wales has risen by a further 0.4%, since March.
- Due to inflation and falling home values the loss on capital invested in the typical UK home (£184,950) has risen to around £14,800 per year.
- The number of properties reduced in price has fallen slightly to 74,946 during the month of March, 29% more than in March 2010.
- Typical time-on-market has fallen 8 days to 133 days (median), but remains 10 days more than in April 2010.
- Annual change in asking prices: -0.9%
- 6-month change in asking prices: -0.8%
Summary
The spring bounce continues in the UK home market. Seasonal optimism has lifted home prices a further 0.4%, although they remain 0.9% less than in April 2010. Supply of properties remains strong (9.5% more new properties appeared on the market in March 2011 than in March 2010) and continues to put downward pressure on asking prices. Hence, vendors continue to resort to price-cutting: 29% more properties were reduced in price in March 2011 than compared to March 2010.
Homebuyer sentiment remains subdued owing to multiple concerns including inflation, job security, future house price stability and mortgage-deposit woes. On the other hand, buy-to-let activity has become a key market driver thanks to a rejuvenated rental sector. Moreover, frustrated sellers are choosing to let out their properties in increasing numbers. The combination of growing rental demand and relatively cheap mortgages (for those that qualify) has served to steady house prices for the time being.
Key figures
| Measure | Figure |
|---|---|
| Mix-adjusted average asking price | £227,433 |
| Monthly change in asking prices | +0.4% |
| Annual change in asking prices | -0.9% |
| 6-month change in asking prices | -0.8% |
| Typical Time on Market | 133 days |
| Average Time on Market | 202 days |
| Properties reduced in price | 74,946 |
| Loss on capital invested per year | £14,800 |
Figures are for England and Wales unless the report states otherwise, as published in the edition.
Charts from the report
Laspeyres Indices based on Weighted Arithmetic Mean of Regional House Prices [May04 = 100]
Laspeyres Index based on Weighted Arithmetic Mean of Regional House Prices [May04 = 100]
Laspeyres Index based on Weighted Arithmetic Mean of Regional House Prices [May04 = 100]
Laspeyres Index based on Weighted Arithmetic Mean of Regional House Prices [May04 = 100]
Source: HM Land Registry
Regional tables
Regional Asking Prices for April 2011, showing gains and losses since April 2010 and current typical Time-
| Current average price | 12-month change | ToM (days) | |
|---|---|---|---|
| East Anglia | £240,399 | +0.7% | 86 |
| East Midlands | £172,350 | +0.1% | 145 |
| Scotland | £162,737 | -0.1% | 173 |
| Greater London | £346,088 | -0.4% | 75 |
| North East | £152,597 | -0.5% | 182 |
| South East | £282,136 | -0.9% | 75 |
| Yorkshire and Humber | £167,878 | -1.3% | 179 |
| Wales | £175,886 | -1.6% | 182 |
| South West | £249,695 | -1.8% | 104 |
| West Midlands | £186,871 | -1.9% | 139 |
| North West | £173,107 | -2.0% | 171 |
| England & Wales | £227,433 | -0.9% | 133 |
on-Market.
Read the full April 2011 edition (PDF, 12 pages)
About the Home Asking Price Index
The Home Asking Price Index measures the change in the prices sellers ask for residential property across England, Wales and Scotland. Today it is computed every month from around half a million advertised homes and is mix-adjusted, so a change in what happens to be on the market does not move the figure; earlier editions state the sample they were built from. Because an asking price is set months before a sale completes, the index runs around five months ahead of completed-sale measures such as the UK House Price Index.
Every edition in the archive, back to October 2006, is listed on the index page. How we measure the UK property market explains the listing data behind it, and today's figures by area are on house prices and rental prices.
Text and figures above are quoted from the April 2011 edition as published, with punctuation normalised for the web, and are not revised. Later editions may restate them.
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