Home Asking Price Index, May 2017: London prices down but most regions performing well
Asking prices in England and Wales rose 0.6% in May 2017, though London prices fell 1.6% year-on-year while most other regions posted solid growth.
This is the May 2017 edition of the Home Asking Price Index, released on 11 May 2017, under the headline:
London Prices Down but Most Regions Performing Well
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
- Home prices up overall by 2.8% year-on-year but this figure lags behind inflation (latest RPI ex. housing) by 0.6%.
- Greater London prices down 1.6% year-on-year (down around 5.0% in real terms).
- Much improved marketing times in the North East and North West: the best since May 2008 and Jan 2008 respectively.
- Increased Time on Market figures continue to highlight the slowdown in Greater London and the South East compared to May last year (Typical Time on Market up 15% and 7% respectively).
- West Midlands tops the regional spring price rises with a month-on-month leap of 1.2%.
- Typical Time on Market falls to 77 days, one day less than in May 2016 (England and Wales).
- The supply of property entering the UK market has dropped again, by 3% YoY. However, supply has increased further in the East and South East by 12% and 7% respectively compared to April 2016.
Summary
Asking prices rose by 0.6% across England and Wales over the last month. The mix-adjusted average was driven up by price rises outside of Greater London. While London prices slide, it is the regions (especially the East of England and the East and West Midlands) that are keeping the national average from falling. Significant growth, over and above the rate of monetary inflation, is evident in five English regions but not in Scotland or Wales.
Contrary to London's woes, the North of England shows considerable improvement in property marketing times. Increased buyer activity has pushed the Typical Time on Market for these regions back down to 2008 levels. The North West is now showing annualised growth of 3.9% and the North East looks set to follow as this formerly lacklustre market finally shows genuine recovery.
Key figures
| Measure | Figure |
|---|---|
| Mix-adjusted average asking price (England & Wales) | £304,740 |
| Monthly change (England & Wales) | 0.6% |
| Annual change (England & Wales) | 3.2% |
| Home prices year-on-year (overall) | 2.8% |
| Typical Time on Market (England & Wales) | 77 days |
| Supply change (UK, YoY) | -3% |
Figures are for England and Wales unless the report states otherwise, as published in the edition.
Charts from the report
Source: Home.co.uk, May 2017
Source: Home.co.uk, May 2017
Source: Home.co.uk, May 2017
Source: Home.co.uk, May 2017
Source: Home.co.uk, May 2017. Note: Average = Mean (days), Typical = Median (days)
Regional tables
UK Asking Prices, May-17
| Region | Average Asking Price | Monthly % change | Annual % change |
|---|---|---|---|
| Scotland | £181,266 | 1.1% | 2.3% |
| North East | £155,489 | 0.7% | 0.0% |
| Yorks & The Humber | £185,423 | 0.6% | 3.2% |
| England & Wales | £304,740 | 0.6% | 2.8% |
| North West | £191,105 | 0.5% | 3.9% |
| West Midlands | £231,944 | 1.2% | 4.5% |
| East Midlands | £219,415 | 0.9% | 5.7% |
| East | £357,927 | 0.8% | 8.1% |
| Wales | £188,445 | 0.8% | 1.6% |
| Greater London | £544,103 | 0.0% | -1.6% |
| South East | £403,992 | 0.8% | 2.9% |
| South West | £317,898 | 1.1% | 4.9% |
UK Time on Market, May-17
| Region | Average Time on Market | Typical Time on Market | Annual % supply change |
|---|---|---|---|
| Scotland | 237 | 98 | -13% |
| North East | 235 | 107 | -2% |
| Yorks & The Humber | 184 | 85 | -7% |
| England & Wales | 158 | 77 | -3% |
| North West | 184 | 90 | -8% |
| West Midlands | 145 | 69 | -8% |
| East Midlands | 135 | 64 | -4% |
| East | 106 | 55 | 12% |
| Wales | 236 | 128 | -10% |
| Greater London | 129 | 70 | -2% |
| South East | 108 | 58 | 7% |
| South West | 144 | 70 | -6% |
From the director's commentary
"The UK property market is heading into a period of much lower growth overall. The national growth figures will remain muted due to the poor performance of London, which could last for some considerable time."
Doug Shephard, Director at Home.co.uk
Read the full May 2017 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 May 2017 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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