Home Asking Price Index, May 2008: asking prices weaken further
Asking prices in England and Wales fell 0.3% in May 2008, with annual growth slowing to a 15 month low of 2.2%.
This is the May 2008 edition of the Home Asking Price Index, released on 13 May 2008, under the headline:
Asking Prices Weaken 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 0.3%.
- Monthly falls were observed in 8 of the 9 English regions and in Scotland and Wales. Only East Anglia bucks the UK house price trend with a rise of 0.3%.
- Asking Prices in England & Wales have risen only 2.2% since May 2007, a fall in real terms of 1.6% relative to the Retail Price Index (RPI Mar 08).
- Scottish Asking Prices have fallen 2.4% since Nov 07.
Summary
The May 08 UK housing market is characterised by a dearth of buyers and a relative glut of sellers. Market sentiment continues to deteriorate as media reports of falling house prices reinforce buyer apprehensions. Mortgage lending has been drastically reduced, in terms of both loan-to-value ratios and the numbers of monthly approvals for homebuyers. The dwindling number of serious buyers is a direct result of the more risk-averse attitude of mortgage lenders, burdened by liquidity concerns. Whilst large falls in asking prices have yet to materialise, sellers must now price properties more competitively to achieve a sale within a reasonable time frame.
Negative sentiment is now hampering regional housing markets across the UK. The weakest markets in terms of asking prices, over the last 6 months, are West Midlands (-3.1%) and Scotland (-2.4%). The most resilient markets over the same period are East Anglia (+3.5%), Yorkshire and Humber (+2.0%) and Greater London (+1.5%).
Key figures
| Measure | Figure |
|---|---|
| Mix-adjusted average asking price | £256,590 |
| Monthly change in asking prices | -0.3% |
| Annual change in asking prices | +2.2% |
| HAPI index value | 105.2 |
| 6-month change in asking prices (England & Wales) | -0.1% |
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 | 6-month change | |
|---|---|---|
| East Anglia | £264,279 | +3.5% |
| Yorkshire and Humber | £181,878 | +2.0% |
| Greater London | £354,274 | +1.5% |
| Wales | £193,595 | -0.1% |
| North West | £190,140 | -0.7% |
| South East | £290,303 | -1,4% |
| South West | £267,932 | -1.7% |
| North | £168,394 | -1.8% |
| East Midlands | £187,744 | -1.9% |
| Scotland | £179,792 | -2.4% |
| West Midlands | £205,306 | -3.1% |
| England & Wales | £256,590 | -0.1% |
Regional asking prices for May 2008, showing gains and losses since November 2007.
Read the full May 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 May 2008 edition as published, with punctuation normalised for the web, and are not revised. Later editions may restate them.
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