Home Asking Price Index, April 2017: asking prices surge on spring optimism
Asking prices in England and Wales rose 0.9% in April, lifting annual growth to 3.0% and the average price to £302,793.
This is the April 2017 edition of the Home Asking Price Index, released on 12 April 2017, under the headline:
Asking Prices Surge on Spring Optimism
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
- Seasonal confidence has raised asking prices by +0.9% this month: the largest monthly rise since March 2016.
- Year-on-year home price appreciation for England and Wales has made a countertrend move up to 3.0%.
- The average asking price in England and Wales is now £302,793.
- Regional supply figures indicate that significant increases in inventory hit the market last month in the East of England (+22%), the South East (+18%) and Greater London (+16%) (March 2016 vs. March 2017).
- The South East and South West both topped the regional spring price rises with a month-on-month leap of 1.3%.
- Asking prices gained in Greater London this month (+0.4% MoM) but have lost 1.1% year-on-year.
- Prices rose in all English regions (except the North East where there was no change), Wales and Scotland this month, in line with seasonal expectations.
- Typical Time on Market falls to 76 days, the same as in March 2016 (England and Wales).
- Rents rise by 15% year-on-year in the Yorkshire and Humber region.
- The supply of property entering the UK market has ticked up, by 7% YoY, to a 34-month high.
Summary
Spring optimism has served to rally home prices strongly this month. Consequently, year-on-year growth has also increased slightly (a countertrend uptick) but, with the latest inflation figures showing 3.5% (RPI ex. housing), UK home prices are really going nowhere overall. Despite significant year-on-year growth in several regions, 2017 looks set to be a year of stagflation for UK property.
Vendor confidence is benefitting from a spring boost in many regions and this effect is most apparent in the South East and South West. Whilst the London market remains subdued, it is the more outlying regions that are supporting the national housing market figures. Prices in the East of England and the East Midlands have risen most during the last 12 months (9.4% and 5.6% respectively). However, unlike the East Midlands, supply is rising rapidly in the East of England and this will serve to attenuate price rises over the coming months.
Key figures
| Measure | Figure |
|---|---|
| Average asking price (England & Wales) | £302,793 |
| Monthly change in asking prices | +0.9% |
| Annual change in asking prices | 3.0% |
| Typical Time on Market | 76 days |
| Increase in supply entering UK market | +7% |
| RPI inflation (ex. housing) | 3.5% |
Figures are for England and Wales unless the report states otherwise, as published in the edition.
Charts from the report
Source: Home.co.uk, April 2017
Source: Home.co.uk, April 2017
Source: Home.co.uk, April 2017
Source: Home.co.uk, April 2017. Note: Average = Mean (days), Typical = Median (days)
Regional tables
UK Asking Prices, Apr-17
| Region | Average Asking Price | Monthly % change | Annual % change |
|---|---|---|---|
| Scotland | £179,296 | 1.0% | 1.9% |
| North East | £154,368 | 0.0% | -0.3% |
| Yorks & The Humber | £184,333 | 1.2% | 3.2% |
| England & Wales | £302,793 | 0.9% | 3.0% |
| North West | £190,120 | 0.7% | 3.9% |
| West Midlands | £229,221 | 0.9% | 3.9% |
| East Midlands | £217,413 | 1.0% | 5.6% |
| East | £355,062 | 0.8% | 9.4% |
| Wales | £186,978 | 0.9% | 1.6% |
| Greater London | £543,896 | 0.4% | -1.1% |
| South East | £400,726 | 1.3% | 2.7% |
| South West | £314,463 | 1.3% | 4.7% |
UK Time on Market, Apr-17
| Region | Average Time on Market | Typical Time on Market | Annual % supply change |
|---|---|---|---|
| Scotland | 248 | 134 | -4% |
| North East | 238 | 132 | 6% |
| Yorks & The Humber | 187 | 95 | 0% |
| England & Wales | 161 | 76 | 7% |
| North West | 190 | 103 | 4% |
| West Midlands | 148 | 67 | 2% |
| East Midlands | 139 | 66 | -1% |
| East | 107 | 54 | 22% |
| Wales | 239 | 148 | -5% |
| Greater London | 129 | 67 | 16% |
| South East | 109 | 56 | 18% |
| South West | 146 | 69 | 3% |
From the director's commentary
"Of the aforementioned regions, Yorkshire and Wales stand out with significant rent rises, way over and above inflation. Moreover, yields are also rising, especially in Yorkshire where rents have soared over the last year, making investment look increasingly attractive."
Doug Shephard, Director at Home.co.uk
Read the full April 2017 edition (PDF, 6 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 2017 edition as published, with punctuation normalised for the web, and are not revised. Later editions may restate them.
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