Home Asking Price Index, September 2007: prices slide as confidence crumbles
Average asking prices in England and Wales fell 0.4% in September, the first monthly drop since August 2006, though annual growth remained at 7.1%.
This is the September 2007 edition of the Home Asking Price Index, released on 12 September 2007, under the headline:
Prices slide as confidence crumbles
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
- Prices of homes on the market in England and Wales fell by 0.4% between August and September, the first monthly fall since Aug06.
- Asking Prices for homes in England and Wales have risen 7.1% year-on-year.
- Greater London Asking Prices fell by 1.2% this month.
- Asking prices fell in 6 of England's 9 regions and Scotland since August, whilst Wales registered the smallest possible rise of 0.1%.
Summary
This month's fall in the mix adjusted average house price for England and Wales indicates a notable sea change in housing market sentiment. Sellers' confidence has finally begun to ebb in the face of rising interest rates and the house price high water market may well have been reached. The HAPI for England and Wales has dropped 0.4% to 105.6 since August [May04 = 100].
Over the last 12 months, Asking Prices for homes in England and Wales have risen 7.1%, ca. 5.2% above the CPI, ca. 3.3% above the RPI and ca. 3.8% above the AEI (excluding bonuses). The mix-adjusted average price of homes in England and Wales, advertised on the open market, now stands at £257,519.
Key figures
| Measure | Figure |
|---|---|
| Monthly change | -0.4% |
| Annual change | +7.1% |
| HAPI index | 105.6 |
| Q3 change | +1.7% |
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 Index based on Weighted Arithmetic Mean of Regional House Prices [May04 = 100]
Laspeyres Indices based on Weighted Arithmetic Mean of Regional House Prices [May04 = 100]
Laspeyres Indices based on Weighted Arithmetic Mean of Regional House Prices [May04 = 100]
Laspeyres Indices based on Weighted Arithmetic Mean of Regional House Prices [May04 = 100]
Source: HM Land Registry
Regional tables
Regional Housing Markets
| Current average price | Q3 change | |
|---|---|---|
| Scotland | £178,484 | +4.0% |
| South East | £296,855 | +3.7% |
| Wales | £198,486 | +2.4% |
| South West | £273,212 | +2.2% |
| Yorkshire and Humber | £179,814 | +2.0% |
| East Anglia | £260,299 | +1.8% |
| East Midlands | £191,969 | +1.0% |
| North West | £191,621 | +1.0% |
| Greater London | £346,497 | +0.6% |
| West Midlands | £206,658 | +0.3% |
| North | £171,159 | -0.1% |
Regional average asking prices for Sept 07 showing gains and losses in Q3 07.
Read the full September 2007 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 September 2007 edition as published, with punctuation normalised for the web, and are not revised. Later editions may restate them.
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