Home Asking Price Index, October 2023: prices tick up as supply remains tight
Asking prices in England and Wales rose by 0.2% in September, though remained 1.5% lower than a year earlier amid tight supply of new instructions.
This is the October 2023 edition of the Home Asking Price Index, released on 13 October 2023, under the headline:
Prices Tick Up as Supply Remains Tight
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 across England and Wales bounced by 0.2% during September, making the year-on-year fall in asking prices just -1.5%.
- The supply rate of new instructions entering the market remains remarkably restrained overall: no change year-on-year and down 8% vs. September 2018. The largest increase at the regional level was observed in the East of England while the largest year-on-year falls in supply were in Scotland (-7%) and Wales (-8%).
- The Typical Time on Market for unsold property in England and Wales increased by six days during September in line with seasonal expectations. The current median is 90 days; in pre-COVID October 2019, the same measure was 99 days.
Summary
After just two months of sliding prices triggered by rising borrowing costs, the national average ticked up during September by a modest 0.2%. This is a clear indication that the UK housing market is much more resilient than many pundits have asserted. Despite higher borrowing costs, the current market shows marked similarities in all the key metrics to that of pre-COVID years 2018 and 2019.
A strong rental market has been key to supporting the sales market. Such large increases in rent over the last five years were brought about by a dramatic fall in the stock of on-market properties available to let. Today, the total rental stock is 48% lower than it was in October 2018, although the actual record low point was in September last year. Since then stock has steadily increased (by around 37%) and this is why rent hikes are now slowing. Despite this rise, the amount of property available to let is still historically very low and this will support smaller rent rises going forward and therefore also the sales market.
Key figures
| Measure | Figure |
|---|---|
| Monthly change in asking prices | 0.2% |
| Annual change in asking prices | -1.5% |
| Typical Time on Market | 90 days |
| Total unsold stock | 473,188 |
| New instructions vs September 2018 | down 8% |
| UK asking rent annual growth | 9.7% |
| Asking price growth since October 2018 | +14.4% |
| Rental supply annual increase | 19.7% |
Figures are for England and Wales unless the report states otherwise, as published in the edition.
Charts from the report
Source: Home.co.uk Asking Price Index, October 2023, Indexed to May 2004 (Value=100).
Source: Home.co.uk Asking Price Index, October 2023 and ONS [RPI ex. housing].
Source: Home.co.uk Asking Price Index, October 2023
Source: Home.co.uk Asking Price Index, October 2023
Source: Home.co.uk Asking Price Index, October 2023
Source: Home.co.uk Asking Price Index, October 2023
Source: Home.co.uk Asking Price Index, October 2023. Average = Mean (days), Typical = Median (days).
Regional tables
UK Asking Prices, Oct-23
| Region | Average Asking Price | Monthly % change | Annual % change |
|---|---|---|---|
| Scotland | £229,441 | -0.2% | 5.6% |
| North East | £190,065 | 0.0% | 2.4% |
| Yorks & The Humber | £248,809 | -0.1% | 1.2% |
| England & Wales | £353,869 | 0.2% | -1.5% |
| North West | £264,533 | 1.1% | 2.5% |
| West Midlands | £297,404 | -0.4% | -1.8% |
| East Midlands | £282,787 | -0.2% | -2.5% |
| East | £395,233 | -0.1% | -3.4% |
| Wales | £266,754 | 0.5% | 1.9% |
| Greater London | £540,936 | 0.3% | -3.3% |
| South East | £444,538 | 0.2% | -1.7% |
| South West | £382,436 | 0.1% | -1.5% |
UK Time on Market, Oct-23
| Region | Average Time on Market | Typical Time on Market | Annualised % supply change |
|---|---|---|---|
| Scotland | 178 | 69 | -7% |
| North East | 152 | 89 | 0% |
| Yorks & The Humber | 136 | 83 | 2% |
| England & Wales | 157 | 90 | 0% |
| North West | 152 | 89 | -3% |
| West Midlands | 149 | 87 | 1% |
| East Midlands | 136 | 87 | -2% |
| East | 144 | 85 | 5% |
| Wales | 165 | 98 | -8% |
| Greater London | 191 | 96 | -3% |
| South East | 149 | 85 | 3% |
| South West | 142 | 85 | 3% |
From the director's commentary
"Sunak is right not to impose draconian rules on an eclectic mix of housing types, which would only scare landlords out of the market. Better to encourage more focused investment in the private rental sector (especially Green Mortgages for Landlords and Build to Rent), thereby increasing the stock of energy-efficient rental accommodation."
Doug Shephard, Director at Home.co.uk
Read the full October 2023 edition (PDF, 10 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 2023 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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