Home Asking Price Index, January 2011: home prices hit new post-crisis low
Asking prices in England and Wales fell 0.4% in December, pushing the annual change to -0.6% while typical time on market rose to 148 days.
This is the January 2011 edition of the Home Asking Price Index, released on 12 January 2011, under the headline:
Home Prices Hit New Post-Crisis Low
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 has fallen by a further 0.4%.
- There were monthly asking price falls in all English regions except Greater London, whilst prices rose in Scotland and Wales.
- The number of properties reduced in price has fallen further to 26,940 for the month of December, but is still 32% more than in December 2009.
- Typical time on market has risen for a 5th consecutive month: Up 13 days to 148 days (median).
- Annual change in asking prices: -0.6%
- 6-month change in asking prices: -1.3%
Summary
UK market home prices moved down for a third successive month due to weaker buyer demand and underlying seasonal factors. Sentiment amongst many buyers is dominated by frustration over mortgage availability and nervousness regarding future price drops. Sellers, on the other hand, are growing increasingly frustrated as properties stay on the market longer. The culmination of these factors has served to slow down the turnover of the property market and drive prices down to a new post-crisis low. However, the rental sector is now experiencing renewed vigour and this will help support transaction levels for suitable properties at the lower end of the market.
Over the last year asking prices have fallen by 0.6% in England and Wales, and this reflects the relative weakness of the property market. Moreover, the median Time on Market continues to rise in all English regions, Wales and Scotland at a faster rate than expected for the time of year. Furthermore, price cutting of properties on the market is more prevalent than a year ago.
Key figures
| Measure | Figure |
|---|---|
| Average asking price (England & Wales) | £226,463 |
| Monthly change in asking prices | -0.4% |
| Annual change in asking prices | -0.6% |
| 6-month change in asking prices | -1.3% |
| Typical Time on Market (median) | 148 days |
| Properties reduced in price | 26,940 |
| HAPI index (England & Wales) | 96.7 |
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 January 2010, showing gains and losses since January 2010
| Current average price | 12-month change | ToM (days) | |
|---|---|---|---|
| Greater London | £342,238 | +1.1% | 116 |
| Scotland | £159,413 | +0.9% | 161 |
| East Midlands | £171,059 | +0.1% | 152 |
| East Anglia | £236,852 | -0.3% | 126 |
| Wales | £178,391 | -0.3% | 175 |
| South West | £250,293 | -0.4% | 135 |
| North East | £152,086 | -1.0% | 186 |
| South East | £280,681 | -1.3% | 116 |
| West Midlands | £187,664 | -1.4% | 150 |
| North West | £173,101 | -1.9% | 174 |
| Yorkshire and Humber | £167,823 | -2.3% | 175 |
| England & Wales | £226,463 | -0.6% | 148 |
and current typical Time-on-Market.
Read the full January 2011 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 2011 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
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