Home Asking Price Index, October 2014: home prices push higher despite rising supply
Asking prices in England and Wales rose 0.6% during September, taking annual growth to 8.5%, while price reductions reached a two-year high.
This is the October 2014 edition of the Home Asking Price Index, released on 14 October 2014, under the headline:
Home Prices Push Higher Despite Rising Supply
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 rise for a ninth consecutive month (by 0.6%), making the average annual appreciation for England and Wales 8.5%.
- Home prices rose across most of mainland UK over the last month (prices slipped in the North East, North West and Wales).
- Supply of property for sale continues to grow in Greater London: up by 49% vs. September last year.
- Price cutting hits 2-year high.
- The 20 worst performing property locations revealed.
Summary
The UK property market still has considerable momentum, especially in the South where demand remains high. Prices are not rising as quickly as they were, as evidenced by a falling trend in the year-on-year average price gains chart (page 2), although 8.5% per annum is still high1 and probably not sustainable for much longer. The market is cooling and vendors' expectations are being moderated outside of the current hotspots. The monthly total of on-market price reductions has risen in recent months from a low in December 2013 to a 2-year high. 69,782 properties for sale had their prices cut in September, representing 13% of the total stock of property for sale.
Supply is growing across the UK as vendors are being encouraged by rising prices. Last month, 10% more properties entered the market than in September 2013. The rise in supply in London is much more extreme: up 49% by the same measure.
Key figures
| Measure | Figure |
|---|---|
| Average asking price (England & Wales) | £267,065 |
| Monthly change in asking prices | 0.6% |
| Annual change in asking prices | 8.5% |
| Properties with price reductions | 69,782 |
| Share of stock with price reductions | 13% |
| Increase in new instructions vs. last year | 10% |
| Peak annual price change (June 2014) | 9.6% |
Figures are for England and Wales unless the report states otherwise, as published in the edition.
Charts from the report
Source: Home.co.uk, October 2014
Source: Home.co.uk, October 2014
Source: Home.co.uk, October 2014
Source: Home.co.uk, October 2014
Source: Home.co.uk, October 2014. Note: Average = Mean (days), Typical = Median (days)
Regional tables
Average 2 Bedroom Average 2 Bedroom 12-month %
| Location | Property Price Sep 2014 | Property Price Sep 2013 | price change |
|---|---|---|---|
| Belgravia | £2,089,484 | £2,262,781 | -7.66% |
| Hartlepool | £86,921 | £93,983 | -7.51% |
| Poole | £244,424 | £263,105 | -7.10% |
| Salford | £161,713 | £173,727 | -6.92% |
| Soho | £1,817,965 | £1,951,512 | -6.84% |
| Halifax | £92,765 | £99,226 | -6.51% |
| North Shields | £105,815 | £113,062 | -6.41% |
| Margate | £168,885 | £179,685 | -6.01% |
| Plymouth | £142,046 | £150,655 | -5.71% |
| St Helens | £81,880 | £86,645 | -5.50% |
| Burnley | £72,568 | £76,578 | -5.24% |
| Westminster | £1,434,577 | £1,513,420 | -5.21% |
| Stockton On Tees | £90,493 | £95,296 | -5.04% |
| Stalybridge | £99,386 | £104,558 | -4.95% |
| Middlesbrough | £91,567 | £95,991 | -4.61% |
| Strand | £1,603,150 | £1,663,421 | -3.62% |
| Gateshead | £116,191 | £120,017 | -3.19% |
| Rochdale | £87,940 | £90,699 | -3.04% |
| Newcastle Upon Tyne | £113,935 | £117,292 | -2.86% |
| South Shields | £103,054 | £105,942 | -2.73% |
UK Asking Prices, Oct-14
| Region | Average Asking Price | Monthly % change | Annual % change |
|---|---|---|---|
| Scotland | £163,207 | 0.8% | 2.3% |
| North East | £153,960 | -0.1% | 0.5% |
| Yorks & The Humber | £174,003 | 0.1% | 2.6% |
| England & Wales | £267,065 | 0.6% | 8.5% |
| North West | £177,799 | -0.1% | 2.6% |
| West Midlands | £203,835 | 0.2% | 3.7% |
| East Midlands | £193,331 | 0.3% | 6.1% |
| East | £284,925 | 1.1% | 9.2% |
| Wales | £180,921 | -0.4% | 2.3% |
| Greater London | £471,124 | 1.1% | 17.8% |
| South East | £347,279 | 0.8% | 9.4% |
| South West | £282,524 | 0.2% | 5.3% |
UK Time on Market, Oct-14
| Region | Average Time on Market | Typical Time on Market | Annual % supply change |
|---|---|---|---|
| Scotland | 238 | 117 | 10% |
| North East | 304 | 146 | 6% |
| Yorks & The Humber | 229 | 120 | 3% |
| England & Wales | 184 | 97 | 10% |
| North West | 231 | 122 | 2% |
| West Midlands | 184 | 100 | 4% |
| East Midlands | 172 | 94 | 4% |
| East | 129 | 75 | 1% |
| Wales | 261 | 132 | 9% |
| Greater London | 97 | 62 | 49% |
| South East | 114 | 68 | 4% |
| South West | 154 | 91 | 6% |
From the director's commentary
"By contrast, Hartlepool home prices fell hard following the financial crisis and price recovery has been elusive. In fact, price erosion continues in many such locations where supply seemingly continues to outweigh demand."
Doug Shephard, Director at Home.co.uk
Read the full October 2014 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 October 2014 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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