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Home Asking Price Index, January 2008: house prices falter in uncertain market
Asking prices in England and Wales fell 0.3% this month, though annual growth remained at 5.2%, while Greater London prices dropped 1.2%.
- Mix-adjusted average price
- £259,338
- Monthly change in asking prices
- -0.3%
- Annual change in asking prices
- +5.2%
- HAPI index
- 106.3
In this article
This is the January 2008 edition of the Home Asking Price Index, released on 14 January 2008, under the headline:
House Prices Falter in Uncertain Market
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
- Prices of homes on the market in England and Wales have retreated this month by 0.3%.
- The Asking Price year-on-year change for homes in England and Wales currently stands at 5.2%.
- Greater London Asking Prices fell this month by 1.2%.
- Monthly falls registered in 5 of the 10 regions in England and Wales.
Summary
Confidence among sellers crumbled this month as a second cut in the Bank of England base rate failed to materialise. Despite seemingly heavy hints from Gordon Brown and Alistair Darling, the Monetary Policy Committee voted to keep rates at 5.5%. Credit remains much tighter than in previous years on account of higher interest rates and a more cautious approach to mortgage lending. Whilst most sellers are experiencing heightened levels of interest from buyers, as is to be expected at this time of year, many vendors are failing to secure a sale as buyers find that their mortgage lender's valuation is too low. Without the 'tail-wind' of lower interest rates, increasing numbers of failed transactions will put more downward pressure on asking prices.
The HAPI for England and Wales has fallen 0.3 index points to 106.3 since Dec 07 [May04 = 100].
Over the last 12 months, Asking Prices for homes in England and Wales have risen 5.2%, ca. 3.1% above the CPI, ca. 0.9% above the RPI and ca. 1.6% above the AEI (excluding bonuses). The mix-adjusted average price of homes in England and Wales, advertised on the open market, now stands at £259,338.
Key figures
| Measure | Figure |
|---|---|
| Mix-adjusted average price | £259,338 |
| Monthly change in asking prices | -0.3% |
| Annual change in asking prices | +5.2% |
| HAPI index | 106.3 |
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 | 12-month change | |
|---|---|---|
| Greater London | £351,463 | +9.6% |
| Scotland | £182,272 | +9.6% |
| Yorkshire and Humber | £184,391 | +7.3% |
| South East | £295,032 | +5.8% |
| East Anglia | £266,796 | +4.5% |
| North West | £192,447 | +4.0% |
| West Midlands | £210,132 | +4.0% |
| South West | £272,863 | +2.7% |
| North | £171,487 | +2.6% |
| East Midlands | £191,368 | +1.8% |
| Wales | £194,860 | 0.0% |
| England & Wales | £259,338 | +5.2% |
Regional average asking prices for Jan 2008 showing gains and losses since Jan 2007.
Read the full January 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 January 2008 edition as published, with punctuation normalised for the web, and are not revised. Later editions may restate them.
