Home Asking Price Index, March 2011: home prices signal spring bounce
England and Wales asking prices rose 0.4% in February 2011 despite a 0.8% annual fall and rising price reductions.
This is the March 2011 edition of the Home Asking Price Index, released on 14 March 2011, under the headline:
Home Prices Signal Spring Bounce
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 risen by 0.4% since last month.
- Monthly asking price rises in all English regions and Scotland but prices fell 0.5% in Wales.
- The number of properties reduced in price has increased further to 76,075 for the month of February, 76% more than in February 2010.
- Typical time on market has fallen 9 days to 141 days (median).
- Properties new to market in Feb 2011 was 40% higher than in Feb 2010
- Annual change in asking prices: -0.8%
- 6-month change in asking prices: -0.7%
Summary
Spring brings increased activity in the UK home market. Increased optimism among new sellers has lifted home prices this month bucking a 4-month downward trend. This more positive outlook has also produced a supply surge of properties new on the market in February (40% more than in Feb 2010). However, vendors are also resorting to price-cutting: 76% more properties were reduced in price in Fen 2011 than compared to Feb 2010. This underlines the fact that buyer sentiment remains subdued due to concerns over inflation, job security, future house price stability and mortgage-deposit woes. Numbers of first-time buyers remain very low but this is partly compensated for by increased buy-to-let activity. A rejuvenated rental sector will be attracting the attention of frustrated sellers and increasing numbers may choose to let out their properties. Rental demand is strengthening and this will serve to help support house prices in the near term.
The seasonal increase in property market turnover has served to reduce the typical time on market of unsold property to 141 days, although this remains 5 days higher than in March 2010. Average time on market has decreased in all English regions, Wales, Scotland and Northern Ireland.
Key figures
| Measure | Figure |
|---|---|
| Monthly change in asking prices | +0.4% |
| Annual change in asking prices | -0.8% |
| 6-month change in asking prices | -0.7% |
| Typical Time on Market | 141 days |
| Properties reduced in price | 76,075 |
| New instructions change | +40% |
| Average asking price (England & Wales) | £226,511 |
| 3-month change in asking prices | -0.2% |
Figures are for England and Wales unless the report states otherwise, as published in the edition.
Charts from the report
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 Housing Markets
| Current average price | 3-month change | ToM (days) | |
|---|---|---|---|
| Scotland | £160,051 | +1.0% | 178 |
| Greater London | £343,329 | +0.5% | 104 |
| East Anglia | £240,426 | +0.5% | 116 |
| East Midlands | £171,003 | +0.4% | 149 |
| Yorkshire and Humber | £167,789 | +0.1% | 179 |
| North West | £173,277 | 0.0% | 172 |
| Wales | £175,641 | -0.6% | 184 |
| South East | £281,073 | -0.7% | 108 |
| South West | £248,488 | -0.7% | 125 |
| West Midlands | £185,786 | -0.8% | 146 |
| North East | £151,542 | -1.3% | 186 |
| England & Wales | £226,511 | -0.2% | 141 |
Regional Asking Prices for March 2011, showing gains and losses for Q1 and current typical Time on Market.
Location No. 2 Bed Typical No. 2 Bed Typical % Rental
| Properties for Sale | Asking Price (£) | Properties for Rent | Rent (£ pcm) | Yield (gross per annum) | |
|---|---|---|---|---|---|
| Bootle | 331 | 70000 | 113 | 450 | 7.7 |
| Hamilton | 410 | 80000 | 129 | 495 | 7.4 |
| Thamesmead | 169 | 175000 | 180 | 1075 | 7.3 |
| Mansfield | 464 | 85000 | 113 | 494 | 7.0 |
| Manor Park | 128 | 156250 | 116 | 895 | 6.9 |
| Brentford | 214 | 307500 | 238 | 1733 | 6.7 |
| Becton | 115 | 195000 | 128 | 1094 | 6.7 |
| Dundee | 362 | 89475 | 214 | 490 | 6.6 |
| London* | 21754 | 305000 | 22600 | 1650 | 6.5 |
| Hull | 1213 | 87950 | 221 | 472 | 6.4 |
Read the full March 2011 edition (PDF, 12 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 March 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
Thinking about your next move?
See what your home's worth in seconds, with the UK's longest-running property data behind it.
Get an instant valuation