Home Asking Price Index, December 2015: stock levels crash but price hikes take a seasonal pause
Annual asking price growth in England and Wales rose to 8.0% as stock levels fell 16% year on year, despite prices staying flat this month.
This is the December 2015 edition of the Home Asking Price Index, released on 15 December 2015, under the headline:
Stock Levels Crash but Price Hikes Take a Seasonal Pause
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 total stock of property for sale, which was already at unprecedented low levels, has diminished by a further 16% since December last year.
- Asking prices remain unchanged overall since last month.
- The average annual home price appreciation for England and Wales rises further to 8.0%, driven by lack of supply and cheap borrowing.
- Typical time on market is 104 days across England and Wales; six days less than in December 2014.
- Vigorous price hikes in East of England home prices have outpaced Greater London over the last six months.
- Supply of property entering the market indicates alarming annual declines in all regions, with the harshest shortages in London, the South East, West Midlands, Scotland and, most severely, in the East of England.
- Prices dipped in the East, North East, North West, South East, South West, Wales and Yorkshire during the last month.
Summary
The UK property marketplace continues to contract as supply continues to diminish. Currently, there are 47% fewer properties for sale than in Dec 2007. Shortages of stock for sale are worst in the regions where prices are rising the quickest, creating a vicious circle of spiralling price hikes.
Last month, around 12,000 (15%) fewer properties entered the marketplace compared to November 2014, thereby accelerating the already well-established downward trend in stock levels. In turn, this lack of supply has driven overall annual price gains back up to 8.0%, despite the seasonal slowdown.
Key figures
| Measure | Figure |
|---|---|
| Average asking price (England & Wales) | £286,980 |
| Monthly change (England & Wales) | 0.0% |
| Annual change (England & Wales) | 8.0% |
| Typical Time on Market (England & Wales) | 104 days |
| Fall in total stock for sale since Dec 2014 | 16% |
| Fall in new instructions vs Nov 2014 | 15% |
| Price rise since Dec 2010 (England & Wales) | 26.5% |
| Fewer properties for sale than Dec 2007 | 47% |
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 2015
Source: Home.co.uk, December 2015
Source: Home.co.uk, December 2015
Regional tables
UK Asking Prices, Dec-15
| Region | Average Asking Price | Monthly % change | Annual % change |
|---|---|---|---|
| Scotland | £170,381 | 0.2% | 4.7% |
| North East | £153,067 | -0.1% | 0.1% |
| Yorks & The Humber | £175,440 | -0.4% | 2.4% |
| England & Wales | £286,980 | 0.0% | 8.0% |
| North West | £179,533 | -0.1% | 1.9% |
| West Midlands | £212,894 | 0.2% | 5.2% |
| East Midlands | £200,848 | 0.2% | 4.2% |
| East | £311,140 | -0.3% | 10.2% |
| Wales | £183,928 | -0.4% | 2.6% |
| Greater London | £539,228 | 0.5% | 13.3% |
| South East | £379,355 | -0.1% | 10.6% |
| South West | £293,420 | -0.5% | 5.2% |
UK Time on Market, Dec-15
| Region | Average Time on Market | Typical Time on Market | Annual % supply change |
|---|---|---|---|
| Scotland | 249 | 128 | -17% |
| North East | 275 | 145 | -3% |
| Yorks & The Humber | 219 | 123 | -10% |
| England & Wales | 186 | 104 | -15% |
| North West | 219 | 126 | -14% |
| West Midlands | 183 | 106 | -18% |
| East Midlands | 171 | 100 | -15% |
| East | 130 | 74 | -20% |
| Wales | 256 | 149 | -11% |
| Greater London | 117 | 68 | -17% |
| South East | 114 | 69 | -19% |
| South West | 166 | 100 | -14% |
From the director's commentary
"For the time being, stock levels look set to fall further over the course of 2016 and prices will continue their upward spiral."
Doug Shephard, Director at Home.co.uk
Read the full December 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 December 2015 edition as published, with punctuation normalised for the web, and are not revised. Later editions may restate them.
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