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Home Asking Price Index, November 2011: short supply supports home prices
Asking prices in England and Wales stayed flat in October 2011, with supply down 15% year on year and Typical Time on Market rising to 128 days.
- Mix-adjusted average asking price (England & Wales)
- £228,047
- Annual change in asking prices
- -0.1%
- 6-month change in asking prices
- +0.1%
- Typical Time on Market
- 128 days
In this article
This is the November 2011 edition of the Home Asking Price Index, released on 14 November 2011, under the headline:
Short Supply Supports Home Prices
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 remains unchanged since October.
- Sellers who cut their prices cut deeper in October, knocking a total £1.3 billion off the UK's property portfolio.
- Home prices fell in 7 out of 9 English regions and in Scotland and Wales, during the last month. Greater London and the South East showed gains.
- Typical time on market jumps to 128 days.
- Supply of new properties to the UK market in October was 15% less than in October 2010. Greater London supply was down even further (-21%).
- Annual change in asking prices: -0.1%
- 6-month change in asking prices: +0.1%
Summary
The autumnal slowdown in the UK property market is more acute this year than in 2010. Despite a fall in supply, homes are spending more time on the market and prices are flat overall. A total of 81,353 homes on the market had their prices reduced in October and the average price reduction was £16,632 (the largest figure since December 2010). Greater London and the South East are the exceptions to the gloomy national picture. Perhaps unsurprisingly, these property markets are relatively buoyant, benefiting the most from the financial bailout and foreign investment.
Mortgage approvals for purchase remain relatively unchanged year on year. Whilst according the to the CML re-mortgaging and buy-to-let approvals are up significantly. The number of buy-to-let loans increased by 16% over the three months to the end of September, while the value of mortgages advanced in the sector went up by 19%. In the year to September, repossessions totalled 27,500, down 4 percent on the year to September 2010, and therefore repossessions in 2011 as a whole were now likely to be below their 40,000 forecast, the CML said.
Key figures
| Measure | Figure |
|---|---|
| Mix-adjusted average asking price (England & Wales) | £228,047 |
| Annual change in asking prices | -0.1% |
| 6-month change in asking prices | +0.1% |
| Typical Time on Market | 128 days |
| Average Time on Market | 212 days |
| Change in supply of new properties (Oct 2011 vs Oct 2010) | -15% |
| Total value knocked off UK's property portfolio by price cuts | £1.3 billion |
| Number of homes with price reductions | 81,353 |
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 asking prices for November 2011, showing gains and losses since May 2011 and current typical
| Current average price | 6-month change | ToM (days) | |
|---|---|---|---|
| South East | £288,423 | +0.8% | 96 |
| Greater London | £342,573 | +0.5% | 94 |
| East Anglia | £242,393 | +0.4% | 108 |
| South West | £250,696 | +0.2% | 115 |
| North West | £173,454 | +0.2% | 149 |
| West Midlands | £187,740 | -0.1% | 133 |
| East Midlands | £172,071 | -0.6% | 133 |
| North East | £151,635 | -0.6% | 179 |
| Wales | £172,972 | -1.1% | 164 |
| Yorkshire and Humber | £166,922 | -1.2% | 159 |
| Scotland | £161,190 | -1.4% | 142 |
| England & Wales | £228,047 | +0.1% | 128 |
time on market.
Read the full November 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 November 2011 edition as published, with punctuation normalised for the web, and are not revised. Later editions may restate them.
