Home Asking Price Index, February 2016: east England prices take a spring leap
East of England asking prices rose 2.1% in January, overtaking London and the South East with a 12.2% annual increase, while England and Wales prices climbed 8.1%.
This is the February 2016 edition of the Home Asking Price Index, released on 12 February 2016, under the headline:
East England Prices Take a Spring Leap
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
- East England prices jump 2.1% since January as supply is overwhelmed by demand.
- Supply of property entering the UK market indicates a decrease of 8% year-on-year.
- Typical time on market is 114 days across England and Wales: nine days less than in February 2015.
- The mix-adjusted average asking price for England and Wales rises a further 0.7% since last month.
- The average annual home price appreciation for England and Wales dips slightly to 8.1%.
- The total stock of property on the market edges up slightly.
- Prices rise in all regions except the North West and North East during the last month.
Summary
The spring price surge comes early to the East of England driven by an acute lack of supply, and annualised price rises (12.2%) in this region have now overtaken both Greater London (12.0%) and the South East (10.3%). Demand remains strong in all three regions and supply has a long way to catch up.
Across England and Wales, prices remain on a strong rising trend and this looks set to continue as interest rates are currently on hold until at least 2017. A further increase of 0.7% this month in the mix-adjusted average means the annualised rise is currently a very healthy 8.1%.
The total stock of property for sale remains very low, and scarcity will continue to be one of the key drivers of the 2016 property market in the UK. The second key driver is, of course, ultra-low interest rates. The number of properties entering the market is down 8% compared to a year ago. The hardest hit is the West Midlands where 17% less new stock arrived on estate agents' books this January vs. January 2015. The East of England is also in the midst of a property drought and 14% less stock was registered on agent portfolios last month.
Key figures
| Measure | Figure |
|---|---|
| Mix-adjusted average asking price (England & Wales) | £289,778 |
| Monthly change in asking prices | 0.7% |
| Annual change in asking prices | 8.1% |
| Typical time on market | 114 days |
| Change in new instructions (UK) | -8% |
Figures are for England and Wales unless the report states otherwise, as published in the edition.
Charts from the report
Source: Home.co.uk, February 2016
Source: Home.co.uk, February 2016
Source: Home.co.uk, February 2016
Source: Home.co.uk, February 2016
Source: Home.co.uk, February 2016. Note: Average = Mean (days), Typical = Median (days)
Regional tables
UK Asking Prices, Feb-16
| Region | Average Asking Price | Monthly % change | Annual % change |
|---|---|---|---|
| Scotland | £173,016 | 2.3% | 5.0% |
| North East | £152,912 | -0.2% | 0.5% |
| Yorks & The Humber | £175,625 | 0.2% | 2.3% |
| England & Wales | £289,778 | 0.7% | 8.1% |
| North West | £180,357 | 0.0% | 2.5% |
| West Midlands | £216,037 | 1.1% | 5.9% |
| East Midlands | £203,028 | 0.8% | 5.1% |
| East | £317,120 | 2.1% | 12.2% |
| Wales | £182,665 | 0.0% | 1.9% |
| Greater London | £545,133 | 0.2% | 12.0% |
| South East | £383,317 | 0.9% | 10.3% |
| South West | £295,955 | 0.6% | 5.6% |
UK Time on Market, Feb-16
| Region | Average Time on Market | Typical Time on Market | Annual % supply change |
|---|---|---|---|
| Scotland | 268 | 153 | -9% |
| North East | 271 | 158 | -5% |
| Yorks & The Humber | 225 | 137 | -5% |
| England & Wales | 187 | 114 | -8% |
| North West | 228 | 139 | -7% |
| West Midlands | 186 | 115 | -17% |
| East Midlands | 173 | 107 | -11% |
| East | 124 | 75 | -14% |
| Wales | 260 | 162 | -3% |
| Greater London | 115 | 72 | 1% |
| South East | 112 | 71 | -11% |
| South West | 168 | 107 | -10% |
From the director's commentary
"What is clear is that this property boom is not going away while borrowing remains so cheap. The market is enjoying significant momentum and demand remains robust."
Doug Shephard, Director at Home.co.uk
Read the full February 2016 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 February 2016 edition as published, with punctuation normalised for the web, and are not revised. Later editions may restate them.
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