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Home Asking Price Index, October 2011: home sellers cut deeper
Asking prices in England and Wales rose 0.3% in September but stayed 0.5% lower annually as sellers made deeper price cuts.
- Average asking price (England & Wales)
- £228,100
- Monthly change in asking prices
- +0.3%
- Annual change in asking prices
- -0.5%
- 6-month change in asking prices
- 1.2%
In this article
This is the October 2011 edition of the Home Asking Price Index, released on 12 October 2011, under the headline:
Home Sellers Cut Deeper
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 has risen 0.3% since September.
- Home asking prices were cut, on average, by £15,968 in September, the highest figure since November 2010.
- Home prices fell in 4 out of 9 English regions and in Scotland and Wales, during the last month (Yorkshire and Humber registered no change).
- Typical time on market has risen one day to 121 days.
- Supply of new properties to market increased by around 5,000 to 115,739, in September, only 1.4% less than the total for September 2010.
- Annual change in asking prices: -0.5%
- 6-month change in asking prices: 1.2%
Summary
Despite a small monthly rise overall in UK home prices from September to October, home asking prices for October have been lower every year now for 4 years. Home asking prices are now 6.3% lower than in October 2007. It may also be noted that the same small monthly rise to October has been observed previously in 2009 and 2010 only to fall back on the following months. If the same seasonal trend is to be followed this year as in previous years, the autumn will show a slowdown in the UK property market and concomitant price reductions through to February 2012. Sellers are already finding it even harder to sell, as indicated by a rise in both the number of reduced properties, which was 87,511 in September (up by around 15,000 since August) and the average size of the price reductions (£15,968), which is the largest figure since Nov 2010.
Total number of properties for sale is similar to last year, whilst home prices are slightly down. Despite improvements in mortgage availability, sentiment amongst buyers and sellers throughout most of the UK continues to be subdued by a poor macroeconomic outlook. However, certain locations still enjoy a reasonably vigorous property market such as several parts of London, and prestigious University towns. Poor economic news continues to plague the money markets.
Key figures
| Measure | Figure |
|---|---|
| Average asking price (England & Wales) | £228,100 |
| Monthly change in asking prices | +0.3% |
| Annual change in asking prices | -0.5% |
| 6-month change in asking prices | 1.2% |
| Typical Time on Market | 121 days |
| Average Time on Market | 210 days |
| Supply of new properties | 115,739 |
| Average price reduction | £15,968 |
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 October 2011, showing gains and losses since October 2010 and current typical
| Current average price | 12-month change | ToM (days) | |
|---|---|---|---|
| Scotland | £162,116 | +1.4% | 135 |
| East Midlands | £172,709 | +1.0% | 130 |
| South East | £287,507 | +0.5% | 94 |
| East Anglia | £243,528 | -0.3% | 102 |
| North West | £173,582 | -.0.3% | 139 |
| Greater London | £341,146 | -0.6% | 94 |
| West Midlands | £187,938 | -0.6% | 130 |
| South West | £251,061 | -1.0% | 110 |
| North East | £152,624 | -1.3% | 175 |
| Yorkshire and Humber | £168,245 | -1.6% | 154 |
| Wales | £173,393 | -2.3% | 159 |
| England & Wales | £228,100 | -0.5% | 121 |
time on market.
Read the full October 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 October 2011 edition as published, with punctuation normalised for the web, and are not revised. Later editions may restate them.
