Home Asking Price Index, August 2013: prices up but North-South disparity worsens
Asking prices in England and Wales rose 0.3% in August 2013, up 4.4% year-on-year, with London and the South East far outpacing weaker northern regions.
This is the August 2013 edition of the Home Asking Price Index, released on 13 August 2013, under the headline:
Prices Up But North-South Disparity Worsens
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 across England and Wales rose 0.3% on last month and now stands 4.4% higher than in August 2012
- However, the North-South property divide is worsening. Above average price growth is only evident in the London and South East regions
- Price stagnation and deflation has returned to the North of England and Scotland, with an average fall of 0.2% in the last month, while prices in Yorkshire and the West Midlands barely moved
- Restricted supply continues: the volume of new-to-market properties across the UK is down 7% on last year, and down a staggering 23% in the London region
- The average London property is now priced 60% above the average for England & Wales
- The number of price reduced properties on the market has fallen 20% since August 2012
Summary
The average asking price for a home in England and Wales increased again this month and has now risen 4.4% in the last 12 months. However, the price growth has been driven by the southern parts of the country whilst prices in the North are coming under increasing pressure. At one extreme is London, where prices grew another 0.6% this month and are now 9.7% higher than they were five years ago. Contrast this with the North West where prices contracted this month and are now 7.5% below the average prices in August 2008.
The regional price differentials are related to the supply of property for sale. Overall, the volume of new properties entering the market last month was down 7% on July 2012, and supply drops were recorded across much of the country but mainly in the South. In London and the South East in particular, a relatively tiny trickle of property to market is causing competition amongst buyers and pushing up prices. In the North, however, stock still remains relatively unrestricted (actually increasing in Wales and the West Midlands), hence asking prices continue to be under pressure.
Key figures
| Measure | Figure |
|---|---|
| Average asking price (England & Wales) | £242,541 |
| Monthly change (England & Wales) | 0.3% |
| Annual change (England & Wales) | 4.4% |
| New-to-market properties (UK) | -7% |
| Price reduced properties | -20% |
| Average flat price (England & Wales) vs Aug 2007 | -16% |
| Average detached house price (all-time high) | £341,891 |
Figures are for England and Wales unless the report states otherwise, as published in the edition.
Charts from the report
Source: Home.co.uk, August 2013
Source: Home.co.uk, August 2013
Source: Home.co.uk, August 2013
Regional tables
UK Asking Prices, Aug-13
| Region | Average Asking Price | Monthly % change | Annual % change |
|---|---|---|---|
| Scotland | £161,007 | -0.6% | 0.5% |
| North East | £153,160 | -0.1% | 0.7% |
| Yorks & The Humber | £169,445 | 0.0% | 0.8% |
| England & Wales | £242,541 | 0.3% | 4.4% |
| North West | £173,015 | -0.1% | -0.3% |
| West Midlands | £194,280 | 0.1% | 3.1% |
| East Midlands | £180,348 | 0.4% | 2.9% |
| East | £256,639 | 0.1% | 3.0% |
| Wales | £176,415 | 0.2% | 1.6% |
| Greater London | £389,025 | 0.6% | 9.5% |
| South East | £312,061 | 0.7% | 6.0% |
| South West | £264,985 | 0.4% | 3.5% |
From the director's commentary
"The London property market is a law unto itself. Relentless demand from both domestic and foreign buyers is creating a market that is seemingly isolated from the grim economic challenges that face the rest of the country."
Doug Shephard, Director at Home.co.uk
Read the full August 2013 edition (PDF, 5 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 2013 edition as published, with punctuation normalised for the web, and are not revised. Later editions may restate them.
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