Home Asking Price Index, June 2007: asking prices continue to rise
Asking prices in England and Wales rose 0.9% in the month and 5.2% annually, with property supply around 20% higher than a year earlier.
This is the June 2007 edition of the Home Asking Price Index, released on 12 June 2007, under the headline:
Asking Prices Continue to Rise
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
- Asking Prices for homes in England and Wales rose by 0.9% this month and 2.1% in Q2 2007.
- Greater London Asking Prices rose 2.3% this month making the total rise over the last six months equal to 8.1%.
- Scottish Asking Prices have surged by 8.5% in Q2 2007.
- Asking Prices in England and Wales are rising at an annual rate of 5.2%, ca. 2.4% above the CPI, ca. 0.7% above the RPI and ca. 0.7% above the AEI excluding bonuses.
Summary
Confidence amongst sellers of homes continues to remain firm across most of the UK. Greater London continues to outperform other English regions and has helped drive the index for England and Wales to a new high of 103.8 [May04 = 100]. At the same time the UK is experiencing a surge in the number of properties on the market, around 20% higher than previously observed June06.
Year-on-year (YoY) growth in asking prices in England and Wales has shown a dramatic turn-around rising by around +7% over the last twelve months. This rebound from the market downturn in 2005-6 culminating in a second wave of surging house prices, dominated by the Greater London housing market, is now showing some initial signs of being tamed by rising interest rates. Correspondingly, the annual rise overall for England and Wales has begun to level off around the 5-6% mark during Q2. Despite London's extraordinary vigour, the cooling effect of higher borrowing costs appears to be having a more pronounced effect in England's regions and therefore a moderating effect on the national average.
Key figures
| Measure | Figure |
|---|---|
| Monthly asking price change | +0.9% |
| Q2 2007 asking price change | +2.1% |
| Annual asking price change | +5.2% |
| Asking price index | 103.8 |
| Increase in properties on market vs June06 | +20% |
| Above CPI | +2.4% |
| Above RPI | +0.7% |
| Above AEI excluding bonuses | +0.7% |
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 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]
Laspeyres Indices based on Weighted Arithmetic Mean of Regional House Prices [May04 = 100]
Source: HM Land Registry
Regional tables
Regional Housing Markets
| Average Price | Q2 Change | |
|---|---|---|
| Scotland | £171,479 | +8.5% |
| Greater London | £344,302 | +5.5% |
| South East | £286,364 | +2.2% |
| Yorkshire and Humber | £176,289 | +2.2% |
| North | £171,279 | +1.7% |
| West Midlands | £206,098 | +1.6% |
| North West | £189,793 | +1.3% |
| East Midlands | £190,079 | +1.0% |
| South West | £267,363 | +1.0% |
| Wales | £193,762 | +0.1% |
| East Anglia | £255,661 | -0.4% |
Regional average asking prices for June 07 showing gains and losses for Q2 2007.
Read the full June 2007 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 June 2007 edition as published, with punctuation normalised for the web, and are not revised. Later editions may restate them.
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