Home Asking Price Index, August 2010: home prices resist discounting surge
England and Wales asking prices fell 0.1% in July as price reductions rose to 92,000 properties from 74,000 the previous month.
This is the August 2010 edition of the Home Asking Price Index, released on 12 August 2010, under the headline:
Home Prices Resist Discounting Surge
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 edged down 0.1% for a second consecutive month.
- Monthly asking price falls in 6 out of 9 English regions and Scotland.
- East Anglia market house prices fair the best over the last 6 months: up by 2.5%.
- The number of properties reduced in price in July leaped to 92,000 from 74,000 in June.
- Annual change in asking prices: -0.2%.
- 6 month change in asking prices: +0.9%
Summary
A further surge in home price reductions in July means that 92,000 homes on the market were reduced in price last month, 18,000 more than in June. Despite this, the mix-adjusted average asking price remains stable suggesting that in order to attract buyers and secure sales a 'discount culture' is developing in the UK housing market. In the current economic climate, buyers need to perceive value for money before they commit to a purchase.
Significantly, the monthly price-cutting total has now risen to around 13% of the total market. Those asking prices that were reduced in July were cut, on average, by £14,057.
The UK housing market continues to be plagued by shrinking government spending, poor employment prospects and the threat of a double-dip recession.
Key figures
| Measure | Figure |
|---|---|
| Mix-adjusted average asking price (England & Wales) | £229,486 |
| Monthly change in asking prices | -0.1% |
| Annual change in asking prices | -0.2% |
| 6 month change in asking prices | +0.9% |
| Typical Time on Market (median) | 100 days |
| Average Time on Market (mean) | 186 days |
| Properties reduced in price in July | 92,000 |
Figures are for England and Wales unless the report states otherwise, as published in the edition.
Charts from the report
Laspeyres Index based on Weighted Arithmetic Mean of Weighted Arithmetic Mean of Regional House Prices. [May04 = 100]
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
Data sources: Home.co.uk and the Office for National Statistics.
Regional tables
Regional Asking Prices for August 2010, showing gains and losses since February
| Current average price | 6 month change | |
|---|---|---|
| East Anglia | £241,977 | +2.5% |
| South East | £286,674 | +1.6% |
| Scotland | £161,166 | +1.6% |
| Greater London | £344,140 | +1.5% |
| North East | £154,410 | +1.1% |
| South West | £253,032 | +0.9% |
| Yorkshire and Humber | £171,019 | +0.4% |
| East Midlands | £171,227 | -0.1% |
| West Midlands | £190,121 | -0.2% |
| Wales | £177,250 | -0.4% |
| North West | £174,753 | -0.5% |
| England & Wales | £229,486 | +0.9% |
2010.
Read the full August 2010 edition (PDF, 10 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 August 2010 edition as published, with punctuation normalised for the web, and are not revised. Later editions may restate them.
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