Home Asking Price Index, November 2007: hIPs afford home prices hollow boost
Asking prices in England and Wales rose 0.4% in November 2007, while annual growth slowed to 4.9% amid a HIPs driven surge in larger properties.
This is the November 2007 edition of the Home Asking Price Index, released on 13 November 2007, under the headline:
HIPs Afford Home Prices Hollow Boost
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
- Prices of homes on the market in England and Wales have risen this month by 0.4%.
- The Asking Price year-on-year change for homes in England and Wales has fallen by 2.8% since our August report to just +4.9%.
- Greater London Asking Prices bounced back this month by +1.2%.
- Prices rose in 7 of the 10 regions in England and Wales.
- HIPs cause a belated surge of 3+ bedroom properties entering the market, increasing supply and average prices.
Summary
November's HAPI indicates a 0.4% up-tick for the mix-adjusted average house price in England and Wales. This month's indices have been affected by a surge to market of more expensive properties (with 3 or more bedrooms) that were previously held back by the new HIPs legislation. Accordingly, this market anomaly has served to shore up the national and regional average figures, despite severe underlying pressure on home sellers to cut their asking prices as buyer demand falls away.
The HAPI for England and Wales has dropped 0.6% to 104.9 since September [May04 = 100].
Over the last 12 months, Asking Prices for homes in England and Wales have risen 4.9%, ca. 3.1% above the CPI, ca. 1.0% above the RPI and ca. 1.2% above the AEI (excluding bonuses). The mix-adjusted average price of homes in England and Wales, advertised on the open market, now stands at £256,930.
Key figures
| Measure | Figure |
|---|---|
| Monthly change in asking prices | +0.4% |
| Annual (year-on-year) change | +4.9% |
| Mix-adjusted average asking price | £256,930 |
| 6-month change (England & Wales) | +2.3% |
| HAPI index value (England and Wales) | 104.9 |
| Peak year-on-year growth (August 07) | +7.7% |
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 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]
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 | |
|---|---|---|
| Scotland | £184,246 | +11.2% |
| South East | £294,298 | +3.7% |
| Greater London | £349,006 | +3.6% |
| West Midlands | £211,775 | +3.5% |
| South West | £272,548 | +2.1% |
| Yorkshire and Humber | £178,309 | +2.0% |
| East Midlands | £191,413 | +1.2% |
| North West | £191,530 | +1.1% |
| North | £171,413 | +0.2% |
| East Anglia | £255,334 | +0.1% |
| Wales | £193,701 | -0.1% |
| England & Wales | £256,930 | +2.3% |
Regional average asking prices for Nov 07 showing gains and losses since May 06.
Read the full November 2007 edition (PDF, 11 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 November 2007 edition as published, with punctuation normalised for the web, and are not revised. Later editions may restate them.
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