Home Asking Price Index, February 2008: house prices fall in all regions
Asking prices in England and Wales fell by 1.5% this month while annual growth slowed to 3.7%, with prices falling in every region.
This is the February 2008 edition of the Home Asking Price Index, released on 12 February 2008, under the headline:
House Prices Fall in all Regions
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 price for homes on the market in England and Wales dropped sharply this month by 1.5%, which equates to an average reduction of £3,870.
- The Asking Price year-on-year change for homes in England and Wales has fallen to only +3.7%.
- West Midlands Asking Prices have fallen 3.6% over the last month.
- Monthly falls were registered in all regions in England and Wales.
Summary
Asking prices across the UK are falling fast. Sellers' confidence is sliding further as serious buyers are fewer and hard to find, prompting increased price cutting of properties on the market. A second cut this month of 0.25% in the Bank of England base rate will have been welcomed by sellers and buyers alike, although it will not be enough to stem the tide of falling prices.
Mortgage credit remains tight on account of a more cautious approach to lending in the wake of the collapse of the mortgage backed securities market in August 07. This crisis in the money markets has increased financing costs for lenders and reduced their appetite for risky lending. Increased Loan-to-Value (LTV) ratio demands by many lenders are indicative of the current credit market and are proving prohibitive for many potential buyers with insufficient deposits. Buyers with large cash deposits will undoubtedly have the upper hand over the coming months and they are likely to demand considerable discounts from sellers before agreeing to a purchase.
Key figures
| Measure | Figure |
|---|---|
| Mix-adjusted average asking price | £255,544 |
| Monthly change in asking prices | -1.5% |
| Annual (year-on-year) change | +3.7% |
| HAPI index (England and Wales) | 104.8 |
| England & Wales 6-month change | -1.2% |
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 [May04 = 100]
Laspeyres Indices based on Weighted Arithmetic Mean of Regional House Prices [May04 = 100]
Laspeyres Index based on Weighted Arithmetic Mean of Regional House Prices [May04 = 100]
Laspeyres Indices based on Weighted Arithmetic Mean of Regional House Prices [May04 = 100]
Source: HM Land Registry
Regional tables
Regional Housing Markets
| Current average price | 6-month change | |
|---|---|---|
| Yorkshire and Humber | £184,391 | +3.5% |
| East Anglia | £263,527 | +0.2% |
| Greater London | £349,553 | -0.3% |
| North | £168,901 | -0.7% |
| North West | £190,192 | -1.1% |
| West Midlands | £203,141 | -2.0% |
| South West | £268,504 | -2.1% |
| South East | £288,461 | -2.7% |
| East Midlands | £188,754 | -2.7% |
| Wales | £191,472 | -3.5% |
| Scotland | £169,858 | -5.4% |
| England & Wales | £255,544 | -1.2% |
Regional average asking prices for Feb 2008 showing gains and losses since Aug 2007.
Read the full February 2008 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 February 2008 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
Thinking about your next move?
See what your home's worth in seconds, with the UK's longest-running property data behind it.
Get an instant valuation