Home Asking Price Index, October 2016: home prices bounce back but supply is on the rise
England and Wales asking prices rose 0.7% in the month and 4.4% annually, while supply increased 11% year-on-year in October 2016.
This is the October 2016 edition of the Home Asking Price Index, released on 12 October 2016, under the headline:
Home Prices Bounce Back but Supply is on the Rise
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
- Home prices bounce back, up 0.7% since September, reversing prior falls.
- East of England prices leap 1.1% in just one month, taking the annualised increase to 11.5%.
- Supply of property for sale continues to increase in the key regions of London, (+19%), East of England (+30%) and the South East (+23%) (Sept 16 vs. Sept 15).
- Prices rise in all nine English regions, Wales and Scotland.
- Price cutting of properties on the market rises to 36-month high.
- Typical Time on Market edges up two days to 91 days over the last month across England and Wales: two days less than in October 2015.
- The overall rate of home price appreciation for England and Wales slips to 4.4% (Oct 16 vs. Oct 15).
- The total stock of property on the market drops back slightly since last month and is currently just 0.9% more than in October last year.
Summary
Prices are up across the board this month as optimism rises on the back of further post-Brexit stimulus by the Bank of England. Meanwhile, vendors begin to flood the market. Supply is up by 11% year-on-year but it is the key regions of London (+19%), East of England (+30%) and the South East (+23%) (Sept 16 vs. Sept 15) where we observe the largest increases. A rise in demand to match appears unlikely as we head into the slower part of the property year.
A further price fall in Greater London was avoided this month, chiefly due to a surge in generously priced new listings, but this market continues to slow down. The Typical Time on Market is now 18% higher than this time last year and supply is up 19% year-on-year.
Key figures
| Measure | Figure |
|---|---|
| Average asking price (England & Wales) | £297,929 |
| Monthly change in asking prices | 0.7% |
| Annual change in asking prices | 4.4% |
| Typical Time on Market | 91 days |
| Total stock change year-on-year | +0.9% |
| Supply change year-on-year | +11% |
| Price cutting frequency | 36-month high |
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 2016
Source: Home.co.uk, October 2016
Source: Home.co.uk, October 2016
Source: Home.co.uk, October 2016
Source: Home.co.uk, October 2016. Note: Average = Mean (days), Typical = Median (days)
Regional tables
UK Asking Prices, Oct-16
| Region | Average Asking Price | Monthly % change | Annual % change |
|---|---|---|---|
| Scotland | £178,510 | 0.3% | 5.3% |
| North East | £155,577 | 0.2% | 1.1% |
| Yorks & The Humber | £181,459 | 0.2% | 3.0% |
| England & Wales | £297,929 | 0.7% | 4.4% |
| North West | £186,746 | 0.1% | 4.2% |
| West Midlands | £225,664 | 0.5% | 6.5% |
| East Midlands | £211,328 | 1.0% | 5.5% |
| East | £342,915 | 1.1% | 11.5% |
| Wales | £186,646 | 0.2% | 1.3% |
| Greater London | £538,775 | 0.8% | 1.5% |
| South East | £394,837 | 1.0% | 4.2% |
| South West | £309,168 | 0.7% | 5.0% |
UK Time on Market, Oct-16
| Region | Average Time on Market | Typical Time on Market | Annual % supply change |
|---|---|---|---|
| Scotland | 216 | 106 | 0% |
| North East | 233 | 123 | 9% |
| Yorks & The Humber | 185 | 105 | 5% |
| England & Wales | 158 | 91 | 11% |
| North West | 190 | 108 | 4% |
| West Midlands | 153 | 89 | -3% |
| East Midlands | 141 | 83 | 0% |
| East | 107 | 63 | 30% |
| Wales | 226 | 130 | 0% |
| Greater London | 120 | 78 | 19% |
| South East | 104 | 66 | 23% |
| South West | 146 | 87 | 6% |
From the director's commentary
"Supply is increasing rapidly in the East, South East and London. What's more, the pricing of these new instructions is looking rather optimistic."
Doug Shephard, Director at Home.co.uk
Read the full October 2016 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 2016 edition as published, with punctuation normalised for the web, and are not revised. Later editions may restate them.
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