Home Asking Price Index, July 2008: market sentiment deteriorates further
Asking prices in England and Wales fell 0.5% in the month and turned negative year-on-year for the first time since December 2006.
This is the July 2008 edition of the Home Asking Price Index, released on 14 July 2008, under the headline:
Market Sentiment Deteriorates Further
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 fell this month by 0.5% and is 0.2% down year-on-year (YoY).
- YoY falls were observed in 6 out of 9 English regions and in Wales.
- Asking prices in the East Midlands held steady this month but show a YoY decrease of 2.5%.
- Asking Prices in Scotland show a YoY increase of 3.7% but have been dropping steadily since October 07.
Summary
As the availability of credit continues to tighten and most economic indicators point toward a recession, the mix-adjusted average asking prices continue to fall on a monthly basis and the YoY figures also highlight the trend of falling prices. Ongoing problems in the banking sector continue to cause problems in the mortgage markets, with relatively few mortgage deals available, sharply increased arrangement costs and the requirement to put down a significant deposit. These factors will further deter first time buyers in an already stagnant market. As the Special Liquidity Scheme has had little effect on the availability of credit, attention will now focus on Sir James Crosby's preliminary findings, into his review of the UK mortgage market, which are due to be published at the end of the month.
YoY prices are now falling in England and Wales with only Yorkshire and Humber, Greater London and East Anglia still showing any positive growth over this time-frame. Scotland is still showing the highest positive growth YoY but even this has faltered in recent months.
Key figures
| Measure | Figure |
|---|---|
| Mix-adjusted average asking price (England & Wales) | £254,818 |
| Monthly change in asking prices | -0.5% |
| Annual (YoY) change in asking prices | -0.2% |
| HAPI index (England & Wales) | 104.5 |
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 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 Indices based on Weighted Arithmetic Mean of Regional House Prices [May04 = 100]
Source: HM Land Registry
Regional tables
Regional Housing Markets
| Current average price | YoY change | |
|---|---|---|
| Scotland | £179,483 | +3.7% |
| Yorkshire and Humber | £180,613 | +2.8% |
| Greater London | £352,866 | +2.0% |
| East Anglia | £264,281 | +1.9% |
| North East | £166,309 | -1.0% |
| North West | £188,612 | -1.0% |
| West Midlands | £203,715 | -1.2% |
| South West | £265,406 | -1.3% |
| South East | £286,894 | -2.0% |
| Wales | £193,067 | -2.1% |
| East Midlands | £186,332 | -2.5% |
| England & Wales | £254,818 | -0.2% |
Regional asking prices for July 2008, showing gains and losses YoY.
Read the full July 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 July 2008 edition as published, with punctuation normalised for the web, and are not revised. Later editions may restate them.
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