Home Asking Price Index, July 2010: London gains while regions retreat
England and Wales asking prices fell 0.4% year-on-year while London bucked the trend with a 2.3% rise and price reductions increased to 74,000 properties.
This is the July 2010 edition of the Home Asking Price Index, released on 12 July 2010, under the headline:
London Gains While Regions Retreat
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 edged down 0.1% this month.
- YoY asking price falls in 6 out of 9 English regions, Scotland and Wales.
- Greater London market house prices fair the best: up by 2.3% YoY.
- The number of properties reduced in price in June increased further to 74,000 from 66,000 in May.
- Annual change in asking prices: -0.4%.
- The number of properties for sale has surged by 22% since April 2010.
Summary
Summer has provided the market with more sellers and buyers. Increased market activity has been stimulated by several factors: increased numbers of properties for sale, low mortgage rates and further significant market price reductions. However, supply still outpaces demand in most parts of the UK, keeping a firm hold on prices. 74,000 homes on the market were reduced in price in June. Significantly, this monthly figure has now risen to around 10% of the total market and serves as a very real indication of how difficult property sales are to achieve in most parts of the country as transaction volumes continue to be 40-50% down versus historic averages. Those asking prices that were reduced in June were cut, on average, by £15,347.
Austerity measures are now the new threat in the near term for UK house prices. Driven by Cameron's coalition, cuts in public sector jobs and spending will be painful for many and lead to further unemployment. Regions such as the North East, which has a relatively large amount of public sector employment and sliding home prices, will likely suffer the most.
Key figures
| Measure | Figure |
|---|---|
| Mix-adjusted average asking price (England & Wales) | £229,489 |
| Monthly change in asking prices | -0.1% |
| Annual change in asking prices | -0.4% |
| Typical Time on Market (median) | 97 days |
| Average Time on Market (mean) | 191 days |
| Properties reduced in price (June) | 74,000 |
| Increase in properties for sale since April 2010 | +22% |
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
Laspeyres Index based on Weighted Arithmetic Mean of Regional House Prices [May04 = 100]
Regional tables
Regional Housing Markets
| Current average price | 12 month change | |
|---|---|---|
| Greater London | £345,102 | +2.3% |
| East Anglia | £242,442 | +1.4% |
| South East | £286,678 | +0.3% |
| South West | £253,717 | -0.3% |
| East Midlands | £171,734 | -0.7% |
| Scotland | £163,150 | -0.8% |
| Yorkshire and Humber | £171,259 | -1.8% |
| North West | £175,106 | -2.8% |
| Wales | £177,140 | -2.9% |
| West Midlands | £189,418 | -3.3% |
| North East | £153,671 | -3.4% |
| England & Wales | £229,489 | -0.4% |
Regional Asking Prices for July 2010, showing gains and losses since July 2009.
Read the full July 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 July 2010 edition as published, with punctuation normalised for the web, and are not revised. Later editions may restate them.
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