Home Asking Price Index, January 2010: seasonal chill grips housing market
Asking prices in England and Wales edged up 0.1% in January 2010 but stayed 1.7% below a year earlier, while marketing times lengthened noticeably.
This is the January 2010 edition of the Home Asking Price Index, released on 12 January 2010, under the headline:
Seasonal Chill Grips Housing 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
- The mix-adjusted average Asking Price for homes on the market in England and Wales crept up by 0.1% this month.
- Market house prices fell this month in 3 of the 9 English regions and Wales. Scottish market house prices increased for the first time in 9 months.
- Asking Prices in England and Wales are 1.7% lower than in Jan 2009.
- Typical (median) and Average (mean) marketing times have both jumped up by 14 and 15 days, respectively, since December further underlining the seasonal slowdown.
- Greater London market house prices fell 0.3% over the last month.
Summary
UK asking prices have yet to break out from the downward trend that began in the summer of 2009. The poor state of the UK economy at large and limited mortgage options for first time buyers are stifling any further recovery the UK housing market. As previously observed, price erosion is predominant in semi-detached and terraced housing and flats, whilst prime detached housing remains price stable.
Further house price consolidation remains evident. December saw 20,349 properties reduced in price, the lowest number recorded over the course of 2009. The average price reduction in December was £17,269, the second lowest monthly average for 2009.
The overall picture is one of a subdued market with serious buyers having the upper hand (those with cash or sizable deposits). Sellers, on the other hand are under less pressure to reduce market prices, although room for price increases is severely limited, as the general economic outlook remains lacklustre for 2010. Increasing marketing times will test the nerve of many sellers. It will be interesting to see if the strong regional differences seen in 2009 will persist in 2010.
Key figures
| Measure | Figure |
|---|---|
| Mix-adjusted average asking price | £227,856 |
| Monthly change | +0.1% |
| Annual change | -1.7% |
| Typical Time on Market | 134 days |
| Average Time on Market | 230 days |
| Properties reduced in price (December) | 20,349 |
| Average price reduction (December) | £17,269 |
| HAPI index | 97.31 |
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 Housing Markets
| Current average price | 12-month change | |
|---|---|---|
| South East | £284,426 | +1.3% |
| Greater London | £338,573 | -0.5% |
| South West | £251,197 | -1.4% |
| East Midlands | £170,961 | -2.7% |
| North West | £176,495 | -2.9% |
| Yorkshire and Humber | £171,699 | -3.3% |
| East Anglia | £237,599 | -3.4% |
| West Midlands | £190,267 | -3.5% |
| Wales | £178,974 | -3.9% |
| North East | £153,595 | -4.1% |
| Scotland | £158,046 | -9.2% |
| England & Wales | £227,856 | -1.7% |
Regional Asking Prices for January 2010, showing gains and losses since January 2009.
Read the full January 2010 edition (PDF, 10 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 2010 edition as published, with punctuation normalised for the web, and are not revised. Later editions may restate them.
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