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Home Asking Price Index, August 2020: the market bounces back and prices soar
Average asking prices in England and Wales rose 1.2% during July, taking annual growth to 3.3% despite total stock remaining 9.1% lower than a year earlier.
- Monthly change in asking price
- +1.2%
- Annual change in asking price
- +3.3%
- Stock count vs August 2019
- -9.1%
- New instructions in July (UK)
- 121,000
In this article
This is the August 2020 edition of the Home Asking Price Index, released on 12 August 2020, under the headline:
The Market Bounces Back and Prices Soar
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 England and Wales leaps a further 1.2% since the July reading, bringing the year-on-year rise to 3.3%.
- Supply of new sales instructions exceeded normal levels in England, Wales and Scotland in July (as compared to July 2019).
- Despite surging supply, the overall stock count remains 9.1% lower than in August 2019, as pent-up demand devours the new listings.
- Vendors' further upward pricing indicates phenomenal confidence despite the damage inflicted on the wider economy by measures imposed to halt the COVID-19 pandemic.
- Scottish vendors also show extraordinary confidence as they come out of a prolonged lockdown, with a massive hike in the average home price of 3.6% since last month.
- The best-performing regions are the North West and Yorkshire, both showing year-on-year price growth uptrends of 6.7% and 8.1% respectively.
- A further monthly rise of 0.6% takes the East of England (the UK's worst-performing region) back into positive growth year-on-year (+0.7%).
- 13% fewer properties on the market were reduced in price last month compared to July 2019, suggesting vendors remain both confident and patient.
- Supply in the rental sector across the UK has mostly recovered but remains 6.8% down year-on-year. Only the Greater London area shows an increase in properties available to rent year-on-year.
Summary
The UK property market recovery continues, stepping up a gear in response to considerable pent-up demand and delayed sales. Estate agents had a phenomenally busy month in July, taking on vast amounts of new instructions at the same time as properties were being snapped up. Moreover, new listings are being placed on the market with markedly higher asking prices.
The cumulative rise in the mix-adjusted average asking price for England and Wales over the last three months amounts to just over £10,000.
The annualised mix-adjusted average price growth across England and Wales currently stands at an impressive +3.3%; a vast improvement on Aug 2019, when the annualised rate of increase of home prices was -0.2%.
Key figures
| Measure | Figure |
|---|---|
| Monthly change in asking price | +1.2% |
| Annual change in asking price | +3.3% |
| Stock count vs August 2019 | -9.1% |
| New instructions in July (UK) | 121,000 |
| Overall monthly supply increase (UK) | +22% |
| Change in price reductions vs July 2019 | -13% |
| Rental supply change year-on-year (UK) | -6.8% |
| Annualised price growth, August 2019 | -0.2% |
Figures are for England and Wales unless the report states otherwise, as published in the edition.
Charts from the report
Source: Home.co.uk Asking Price Index, August 2020, Indexed to May 2004 (Value =100).
Source: Home.co.uk Asking Price Index, August 2020
Source: Home.co.uk Asking Price Index, August 2020
Source: Home.co.uk Asking Price Index, August 2020
Source: Home.co.uk Asking Price Index, August 2020
Source: Home.co.uk Asking Price Index, August 2020. Note: Average = Mean (days), Typical = Median (days)
Regional tables
UK Asking Prices, Aug-20
| Region | Average Asking Price | Monthly % change | Annual % change |
|---|---|---|---|
| Scotland | £199,060 | 3.6% | 6.6% |
| North East | £167,036 | 1.0% | 4.0% |
| Yorks & The Humber | £218,112 | 2.3% | 8.1% |
| England & Wales | £319,039 | 1.2% | 3.3% |
| North West | £221,379 | 1.6% | 6.7% |
| West Midlands | £264,236 | 0.9% | 3.3% |
| East Midlands | £245,846 | 1.4% | 3.2% |
| East | £353,501 | 0.6% | 0.7% |
| Wales | £221,615 | 1.5% | 4.8% |
| Greater London | £528,431 | 0.5% | 2.3% |
| South East | £406,861 | 1.7% | 2.9% |
| South West | £334,365 | 1.3% | 2.8% |
UK Time on Market, Aug-20
| Region | Average Time on Market | Typical Time on Market | Annual % supply change |
|---|---|---|---|
| Scotland | 287 | 166 | 11% |
| North East | 260 | 159 | 1% |
| Yorks & The Humber | 188 | 90 | 10% |
| England & Wales | 197 | 107 | 22% |
| North West | 205 | 137 | 3% |
| West Midlands | 168 | 71 | 23% |
| East Midlands | 167 | 72 | 18% |
| East | 168 | 67 | 29% |
| Wales | 262 | 166 | 6% |
| Greater London | 196 | 74 | 45% |
| South East | 176 | 71 | 30% |
| South West | 186 | 80 | 24% |
From the director's commentary
"What a comeback! Prices are up substantially and marketing times are falling rapidly."
Doug Shephard, Director at Home.co.uk
Read the full August 2020 edition (PDF, 8 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 2020 edition as published, with punctuation normalised for the web, and are not revised. Later editions may restate them.
