Home Asking Price Index, February 2012: optimistic sellers raise supply and prices
Asking prices in England and Wales rose 0.5% in January as new UK listings jumped 12% year on year, while average time on market fell to 230 days.
This is the February 2012 edition of the Home Asking Price Index, released on 13 February 2012, under the headline:
Optimistic Sellers Raise Supply and Prices
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 on the market in England and Wales have risen 0.5% since January, despite poor market fundamentals.
- Average time on market has dropped back significantly to 230 days: market activity is increasing but this is due mainly to new vendors.
- New UK sales listings were up 12% in January compared to January 2011, and February looks set to follow this rising trend.
- Scotland's housing market is flooded with a 48% rise in new listings (YoY).
- A small fall (4% YoY) in supply of sales properties will serve to support prices in London in the near term.
- Annual change in asking prices: +1.6%
- 6-month change: -0.1%
Summary
At a glance the latest property market statistics could suggest that the first two months of 2012 show a recovery is underway: home prices are up 1.6% year on year and time-on-market figures are falling. Look deeper into the figures on a regional basis and it becomes apparent that the UK housing market's troubles are far from over.
Vendors are out in force in these first few weeks of 2012, although their over-optimistic pricing coupled with the increase in supply is likely to drive the UK housing market to a tipping point. Restricted supply of properties for sale had served to support prices following the financial crisis and the current flood of market entrants could seriously destabilise home prices in 2012.
Key figures
| Measure | Figure |
|---|---|
| Average asking price (England & Wales) | £226,458 |
| 6-month change | -0.1% |
| Annual change | +1.6% |
| Median time on market (England & Wales) | 147 days |
| Average time on market | 230 days |
| New UK sales listings (YoY) | +12% |
| HAPI index | 97.2 |
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 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 Index based on Weighted Arithmetic Mean of Regional House Prices [May04 = 100]
Laspeyres Index based on Weighted Arithmetic Mean of Regional House Prices [May04 = 100]
Source: HM Land Registry
Regional tables
Regional asking prices for February 2012, showing gains and losses since August 2011 and current
| Current average price | 6-month change | Median ToM (days) | |
|---|---|---|---|
| South East | £288,344 | +1.2% | 114 |
| East Anglia | £243,265 | +0.7% | 126 |
| Greater London | £343,675 | +0.5% | 109 |
| South West | £249,127 | -0.3% | 137 |
| East Midlands | £172,150 | -0.6% | 155 |
| West Midlands | £186,535 | -0.7% | 154 |
| North West | £172,250 | -0.8% | 169 |
| Yorkshire and Humber | £166,525 | -1.3% | 175 |
| North East | £150,355 | -1.8% | 187 |
| Wales | £171,663 | -2.2% | 201 |
| Scotland | £158,539 | -2.6% | 185 |
| England & Wales | £226,458 | -0.1% | 147 |
typical time on market.
Read the full February 2012 edition (PDF, 12 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 2012 edition as published, with punctuation normalised for the web, and are not revised. Later editions may restate them.
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