Home Asking Price Index, August 2015: UK property drought worsens driving prices higher
England and Wales asking prices rose 6.2% annually in August 2015 despite a nationwide fall in property supply.
This is the August 2015 edition of the Home Asking Price Index, released on 12 August 2015, under the headline:
UK Property Drought Worsens Driving Prices Higher
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
- Supply of property for sale falls across the UK; down by 10% (July 2015 vs. July 2014).
- London prices rose the most this month, up 1.5% since July.
Summary
The UK property market continues to enjoy considerable momentum despite talk of mortgage rates rising in the near future. A combination of buyer demand and short supply is driving prices higher, but at a lesser rate than last year. The supply crisis is becoming more acute, and July recorded the lowest number of properties entering the market for that month since the onset of the financial crisis.
Lack of supply is felt most keenly in London and the East of England, where the volumes of properties entering the market are down 23% and 16% respectively. These and other southern regions are clearly sellers' markets and prices are firmly on an upward trajectory. Marketing times in the South East continue to be the lowest in the country. Indeed, across the nation, marketing times are currently around the lowest we have witnessed since 2008.
Overall, the current mix-adjusted average asking price for England and Wales is 6.2% higher than it was in August 2014, and we expect further price rises over the coming months.
Key figures
| Measure | Figure |
|---|---|
| Mix-adjusted average asking price (England & Wales) | £281,497 |
| Monthly change in asking prices | 0.6% |
| Annual change in asking prices | 6.2% |
| Change in supply (July 2015 vs July 2014) | -10% |
| Typical time on market (South East) | 61 days |
| Stock decrease vs August 2014 | -11% |
| Stock decrease vs August 2007 | -39% |
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 2015
Source: Home.co.uk, August 2015
Source: Home.co.uk, August 2015
Source: Home.co.uk, August 2015
Source: Home.co.uk, August 2015. Note: Average = Mean (days), Typical = Median (days)
Regional tables
UK Asking Prices, Aug-15
| Region | Average Asking Price | Monthly % change | Annual % change |
|---|---|---|---|
| Scotland | £167,680 | 0.0% | 3.6% |
| North East | £153,202 | 0.0% | -0.5% |
| Yorks & The Humber | £175,265 | -0.3% | 1.4% |
| England & Wales | £281,497 | 0.6% | 6.2% |
| North West | £179,336 | 0.0% | 0.7% |
| West Midlands | £210,787 | 0.5% | 4.0% |
| East Midlands | £198,826 | 0.3% | 3.6% |
| East | £297,720 | 0.2% | 6.0% |
| Wales | £183,634 | 0.3% | 1.4% |
| Greater London | £525,145 | 1.5% | 12.5% |
| South East | £368,669 | 0.3% | 7.5% |
| South West | £291,951 | 0.6% | 3.6% |
UK Time on Market, Aug-15
| Region | Average Time on Market | Typical Time on Market | Annual % supply change |
|---|---|---|---|
| Scotland | 236 | 104 | -2% |
| North East | 265 | 132 | -2% |
| Yorks & The Humber | 213 | 106 | -2% |
| England & Wales | 178 | 92 | -10% |
| North West | 216 | 112 | -5% |
| West Midlands | 176 | 91 | -10% |
| East Midlands | 165 | 88 | -7% |
| East | 125 | 68 | -16% |
| Wales | 244 | 126 | -6% |
| Greater London | 112 | 64 | -23% |
| South East | 109 | 61 | -10% |
| South West | 154 | 85 | -11% |
From the director's commentary
"In view of such diversity of fortunes across the country, it is difficult to imagine how the Bank of England can realistically raise interest rates anytime soon. Property markets in the North and Wales simply are not strong enough to cope with more costly borrowing."
Doug Shephard, Director at Home.co.uk
Read the full August 2015 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 August 2015 edition as published, with punctuation normalised for the web, and are not revised. Later editions may restate them.
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