Home Asking Price Index, December 2014: home prices catch a winter chill
Asking prices across England and Wales fell 0.7% in the month while annual growth eased to 7.6%, with only Scotland posting a monthly rise.
This is the December 2014 edition of the Home Asking Price Index, released on 12 December 2014, under the headline:
Home Prices Catch a Winter Chill
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 fall in all English regions and Wales.
- Prices fell 0.7% overall in England and Wales during the last month.
- The average annual appreciation for England and Wales falls to 7.6%.
- Only Scotland showed a month-on-month gain (0.3%).
- Supply of property for sale in Greater London up by 39% (vs. November 2013) and by 7% across the UK.
- Prices continue to tread water in the North.
- Prices predicted to rise 7% overall in 2015.
Summary
At the end of what was a very positive year for UK property overall, home prices have finally dipped in line with seasonal expectations. The mix-adjusted average asking price for England and Wales rose 7.6% during 2014. Most of the price growth was observed in London and the South. Indeed, Greater London experienced growth of 15.9% over the last twelve months, and some price moderation is sorely needed in this overheated market. Supply in the capital region has risen considerably since last year (+39%), and this will serve to attenuate price rises in 2015.
Looking ahead, we anticipate that 2015 will be a more consistent year for UK property prices than 2014. With the London market showing signs of slowing down (mainly Prime Central London), we expect the UK average price to rise less quickly next year. Record low mortgage rates will stoke demand whilst record prices in London and the South East will encourage more potential vendors to cash in. Hence, both supply and demand is expected to rise, thereby increasing the volume of the sales market (towards more 'normal' levels).
Key figures
| Measure | Figure |
|---|---|
| Average asking price (England & Wales) | £265,632 |
| Monthly change (England & Wales) | -0.7% |
| Annual change (England & Wales) | 7.6% |
| Typical time on market (England & Wales) | 195 days |
| Supply increase (UK, year-on-year) | +7% |
Figures are for England and Wales unless the report states otherwise, as published in the edition.
Charts from the report
Source: Home.co.uk, December 2014
Source: Home.co.uk, December 2014
Source: Home.co.uk, December 2014
Source: Home.co.uk, December 2014
Source: Home.co.uk, December 2014
Source: Home.co.uk, December 2014. Note: Average = Mean (days), Typical = Median (days)
Regional tables
UK Asking Prices, Dec-14
| Region | Average Asking Price | Monthly % change | Annual % change |
|---|---|---|---|
| Scotland | £162,789 | 0.3% | 3.7% |
| North East | £152,946 | -0.1% | 0.9% |
| Yorks & The Humber | £171,266 | -0.9% | 1.8% |
| England & Wales | £265,632 | -0.7% | 7.6% |
| North West | £176,251 | -0.8% | 2.0% |
| West Midlands | £202,323 | -0.7% | 3.5% |
| East Midlands | £192,662 | -0.4% | 5.6% |
| East | £282,236 | -0.7% | 9.0% |
| Wales | £179,259 | -0.4% | 1.5% |
| Greater London | £475,864 | -0.2% | 15.9% |
| South East | £342,957 | -1.3% | 8.3% |
| South West | £278,901 | -0.9% | 4.2% |
UK Time on Market, Dec-14
| Region | Average Time on Market | Typical Time on Market | Annual % supply change |
|---|---|---|---|
| Scotland | 251 | 138 | 9% |
| North East | 311 | 159 | -5% |
| Yorks & The Humber | 239 | 133 | -3% |
| England & Wales | 195 | 111 | 7% |
| North West | 237 | 134 | 4% |
| West Midlands | 192 | 111 | 3% |
| East Midlands | 183 | 107 | -3% |
| East | 139 | 85 | 3% |
| Wales | 275 | 152 | 4% |
| Greater London | 110 | 72 | 37% |
| South East | 123 | 77 | 13% |
| South West | 168 | 105 | -1% |
From the director's commentary
"2015 will be a year of more even growth for UK property prices than 2014. As the London market shows further signs that supply is rising to meet demand, we expect the UK average price to rise less quickly overall next year."
Doug Shephard, Director at Home.co.uk
Read the full December 2014 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 December 2014 edition as published, with punctuation normalised for the web, and are not revised. Later editions may restate them.
More in What is happening to house prices: the Home guide
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