Home Asking Price Index, August 2011: home prices stagnate as market cools
England and Wales asking prices held steady in July, but time on market rose to 122 days as new supply fell 21% year on year.
This is the August 2011 edition of the Home Asking Price Index, released on 12 August 2011, under the headline:
Home Prices Stagnate as Market Cools
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
- Overall the mix-adjusted average asking price for homes on the market in England and Wales remains unchanged since July.
- London prices ended a long slide with a 0.9% bounce over the last month.
- During the last month, home prices fell in 7 out of 9 English regions and in Scotland.
- Typical time on market has increased a further 9 days to 122 days (median).
- Supply of new properties to market fell back further to 109,273 in July, 21% less than in July 2010.
- Annual change in asking prices: -0.7%
- 6-month change in asking prices: 1.7%
Summary
2011 is proving to be a slower and leaner year for UK property sales than 2010. The volume of properties moving through the market is down and asking prices are lower. Sentiment amongst buyers and sellers is clearly subdued by a poor macroeconomic outlook, which is weighing heavy on the UK property market. The market is witnessing a falling supply of property for sale whilst time on market is rising. Supply and demand are both in retreat. The latter looks set to remain subdued, as the Bank of England has cut its forecast for UK economic growth this year to 1.4% from 1.8%. Economic growth is likely to be sluggish in the next year or so as household incomes remain squeezed.
Whilst market sentiment across all regions of England, Wales and Scotland is currently lacklustre, the reduced supply of properties for sale is serving to support prices. The supply of mortgage credit looks set to remain unchanged in the near term. Interest rates are also likely to remain unchanged with the Bank of England intent on keeping the base rate ultra low. It is therefore unlikely that the property market will experience a flood of distressed sales this year. However, when interest rates do rise eventually, the dual effect of decreased affordability and increased supply will likely drive house prices lower.
Key figures
| Measure | Figure |
|---|---|
| Mix-adjusted average asking price (England & Wales) | £227,752 |
| Annual change in asking prices | -0.7% |
| 6-month change in asking prices | +1.7% |
| Typical Time on Market (median) | 122 days |
| Average Time on Market (mean) | 211 days |
| New instructions (supply) in July | 109,273 |
| Change in new instructions vs July 2010 | -21% |
| HAPI Index (England & Wales) | 97.3 |
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
Regional tables
Regional asking prices for August 2011, showing gains and losses since February 2011 and current typical
| Current average price | 6-month change | ToM (days) | |
|---|---|---|---|
| Scotland | £162,786 | +2.6% | 130 |
| Greater London | £342,094 | +2.2% | 91 |
| East Midlands | £173,150 | +2.1% | 127 |
| South East | £284,895 | +2.0% | 93 |
| North West | £173,664 | +1.8% | 146 |
| West Midlands | £187,793 | +1.6% | 127 |
| East Anglia | £241,615 | +1.4% | 104 |
| Yorkshire and Humber | £168,752 | +1.3% | 152 |
| North East | £153,039 | +1.2% | 169 |
| South West | £249,856 | +1.0% | 109 |
| Wales | £175,539 | +0.3% | 157 |
| England & Wales | £227,752 | +1.7% | 122 |
time on market.
Read the full August 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 August 2011 edition as published, with punctuation normalised for the web, and are not revised. Later editions may restate them.
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