Home Asking Price Index, November 2008: asking price cuts deepen
Asking prices in England and Wales fell 1.3% in October, down 3.7% year-on-year, with 200,000 homes cut in price.
This is the November 2008 edition of the Home Asking Price Index, released on 12 November 2008, under the headline:
Asking Price Cuts Deepen
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
- Asking Prices for homes on the market in England and Wales fell by 1.3% in the last month.
- Monthly price falls observed in 9 out of 9 English regions, Scotland and Wales.
- Asking Prices across England and Wales have fallen 3.7% since November 07.
- The average Asking Price reduction in October was £20,194.
- London Asking Prices dropped 4.1% over the last 6 months.
Summary
There is no reprieve for the housing market and no quick fix. The failure of massive bailouts to shore up confidence in the ailing sector is now evident. Housing market sentiment is crashing across the UK as credit deflation begins to devastate the wider UK economy. The record 1.5% cut in the Bank of England base rate this month smacks of a panic measure which at best may slow the increase in home repossessions. As long as home values continue to depreciate, such a measure is unlikely to encourage mortgage lenders to risk supplying further finance to potential homebuyers. Rather Loan-to-Value ratios will continue to fall thereby driving house prices lower.
Housing market sentiment, across all regions of England, Wales and Scotland, tumbled further this month. Asking prices of 200,000 homes on the market were cut in October (187,000 in September), by an amount on average equal to £20,194. Deeper cuts in asking prices over coming months are to be expected.
Key figures
| Measure | Figure |
|---|---|
| Mix-adjusted average asking price (England & Wales) | £247,483 |
| Monthly change in asking prices | -1.3% |
| Annual change in asking prices | -3.7% |
| Homes with price cuts in October | 200,000 |
| Homes with price cuts in September | 187,000 |
| HAPI index (England & Wales) | 101.5 |
| London asking prices 6-month change | -4.1% |
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 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 | 6-month change | |
|---|---|---|
| North East | £164,987 | -2.0% |
| Wales | £189,235 | -2.3% |
| Yorkshire and Humber | £177,482 | -2.4% |
| Scotland | £174,592 | -2.9% |
| South West | £260,478 | -2.9% |
| West Midlands | £199,376 | -2.9% |
| North West | £183,795 | -3.3% |
| South East | £278,989 | -3.9% |
| East Anglia | £253,379 | -4.1% |
| Greater London | £339,807 | -4.1% |
| East Midlands | £177,558 | -5.4% |
Regional Asking Prices for November 2008, showing 6-month change.
Read the full November 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 November 2008 edition as published, with punctuation normalised for the web, and are not revised. Later editions may restate them.
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