Home Asking Price Index, December 2006: demand drives asking price rises
Asking prices in England and Wales rose 0.2% in December, taking the Q4 increase to 2.0%, despite falling 0.8% over the year.
This is the December 2006 edition of the Home Asking Price Index, released on 12 December 2006, under the headline:
Demand Drives Asking Price Rises
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
- Asking Prices for homes in England and Wales rose weakly this month by 0.2% and 2.0% overall for Q4.
- Asking Prices in England and Wales fell by 0.8% over the last year (ca. 3.2% below the CPI, ca. 4.5% below the RPI and ca. 4.3% below the AEI).
- Greater London Asking Prices rose strongly, this month by 1.2% (and 3.2% in Q4).
Summary
Asking prices for homes, currently on the market, in England and Wales increased only marginally this month, by 0.2%. This latest increase makes December's API the fourth consecutive monthly report indicating rising asking prices. The total increase for Q4 was 2.0%, showing continued growth in confidence amongst sellers in England and Wales. Asking prices have rallied strongly since Spring 06, however, they failed to make positive gains overall during the course of 2006 (-0.8%). Average asking price values in 2006 were significantly affected by the increased number of flats on the market priced lower than in 2005, as can be seen in the table below.
Whilst an overall increase was observed for detached houses in England and Wales, terraced and semi-detached house prices have showed little or no net gain over the course of 2006. A considerable number of new-build flats entered the market in 2006 and the increased supply served to drive average flat prices down in first half of the year. All housing types, including flats, have shown notable price increases in Q4 2006.
Key figures
| Measure | Figure |
|---|---|
| Monthly change (December) | +0.2% |
| Q4 change | +2.0% |
| Annual change (2006) | -0.8% |
| Detached average asking price | £318,699 |
| Terraced average asking price | £172,435 |
| Semi-detached average asking price | £203,814 |
| Flats average asking price | £176,287 |
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 Index based on Weighted Arithmetic Mean of Regional House Prices
Source: HM Land Registry
Regional tables
Asking Price Change by Housing Type
| Housing Type | Average Asking Price | Change for 2006 | Change for Q4 |
|---|---|---|---|
| Detached | £318,699 | +1.8% | +1.9% |
| Terraced | £172,435 | +0.5% | +2.5% |
| Semi-detached | £203,814 | -0.6% | +2.8% |
| Flats | £176,287 | -5.9% | +2.2% |
Regional Housing Markets
| Yorkshire and Humber | £175,171 | +4.2% |
| Greater London | £317,680 | +3.2% |
| South East | £276,520 | +2.9% |
| North | £167,494 | +2.6% |
| South West | £263,520 | +2.5% |
| Wales | £193,874 | +2.4% |
| West Midlands | £201,215 | +2.2% |
| East Anglia | £252,246 | -0.1% |
| East Midlands | £187,340 | -0.5% |
| North West | £184,925 | -0.5% |
Regional average asking prices for December 06, showing gains and losses over Q4.
Read the full December 2006 edition (PDF, 9 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 December 2006 edition as published, with punctuation normalised for the web, and are not revised. Later editions may restate them.
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