Home Asking Price Index, June 2016: London prices fall while East of England soars
London and Wales asking prices fell 0.4% in June 2016, while the East of England surged 1.6% as national annual price growth reached 6.8%.
This is the June 2016 edition of the Home Asking Price Index, released on 14 June 2016, under the headline:
London Prices Fall While East of England Soars
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
- East of England vendors hiked their prices a further 1.6% over the last month, indicating that the region's property market is seriously overheating.
- Three consecutive months of rising marketing times in London have impacted on prices, which dropped 0.4% over the last month.
- Prices are rising in all mainland UK regions, except Wales and Greater London, making the overall mix-adjusted average asking price rise a further 0.4% since last month.
- Supply of property for sale has dropped overall by 7% year-on-year.
- Only two regions showed small year-on-year rises this month: 2% in Greater London and just 1% in the South East.
- Typical Time on Market edges up two days to 80 days over the last month across England and Wales: nine days less than in June 2015.
- The average annualised rate of home price appreciation for England and Wales slips to 6.8%.
- The total stock of property on the market edges up further but is still 7.6% less than in June last year.
Summary
Prices continue to rise in most regions, driven by stock scarcity and cheap mortgages. London and Wales prices both dipped 0.4% and the North East remains unchanged. Leading the charge, the East of England is showing remarkable price hikes (2.0% last month followed by 1.6% this month).
The main indicators show that the property market is in the best shape it has been since the financial crisis. The slowdown in London may be regarded as a return to a more sustainable market following the frenetic activity observed during 2013-15. Moreover, several regional markets that were left behind in the wake of the Greater London surge are now showing significant activity and price growth.
Lack of supply remains a fundamental driver in the current market and the total stock of property for sale continues to be historically very low. For instance, the acute supply shortage in the East of England has driven prices ever skyward (up 13.9% since June 2015) and this region is now outpacing London and the South East by a considerable margin in terms of home price appreciation. We anticipate that prices will soon surge in the East and West Midlands in a similar fashion over the next 12 months as the supply of homes for sale has dropped by 13% and 14% respectively year-on-year.
Key figures
| Measure | Figure |
|---|---|
| Average asking price (England & Wales) | £297,600 |
| Monthly change (England & Wales) | 0.4% |
| Annual change (England & Wales) | 6.8% |
| Typical Time on Market | 80 days |
| Annual stock change | -7.6% |
| Annual supply change | -7% |
Figures are for England and Wales unless the report states otherwise, as published in the edition.
Charts from the report
Source: Home.co.uk, June 2016
Source: Home.co.uk, June 2016
Source: Home.co.uk, June 2016
Source: Home.co.uk, June 2016
Source: Home.co.uk, June 2016
Source: Home.co.uk, June 2016. Note: Average = Mean (days), Typical = Median (days)
Regional tables
UK Asking Prices, Jun-16
| Region | Average Asking Price | Monthly % change | Annual % change |
|---|---|---|---|
| Scotland | £179,131 | 1.1% | 6.7% |
| North East | £155,580 | 0.0% | 0.7% |
| Yorks & The Humber | £181,364 | 1.0% | 3.6% |
| England & Wales | £297,600 | 0.4% | 6.8% |
| North West | £185,148 | 0.6% | 3.3% |
| West Midlands | £223,354 | 0.7% | 6.6% |
| East Midlands | £208,325 | 0.4% | 5.3% |
| East | £336,241 | 1.6% | 13.9% |
| Wales | £184,858 | -0.4% | 1.2% |
| Greater London | £550,616 | -0.4% | 7.0% |
| South East | £393,712 | 0.2% | 7.8% |
| South West | £305,875 | 0.9% | 6.0% |
UK Time on Market, Jun-16
| Region | Average Time on Market | Typical Time on Market | Annual % supply change |
|---|---|---|---|
| Scotland | 218 | 87 | -8% |
| North East | 239 | 114 | -10% |
| Yorks & The Humber | 187 | 92 | -10% |
| England & Wales | 157 | 80 | -7% |
| North West | 193 | 97 | -11% |
| West Midlands | 151 | 75 | -14% |
| East Midlands | 141 | 74 | -13% |
| East | 104 | 54 | -8% |
| Wales | 225 | 116 | -11% |
| Greater London | 105 | 62 | 2% |
| South East | 96 | 54 | 1% |
| South West | 140 | 75 | -7% |
From the director's commentary
"Significant imbalances in the UK economy? They still exist."
Doug Shephard, Director at Home.co.uk
Read the full June 2016 edition (PDF, 6 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 2016 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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