Home Asking Price Index, September 2009: house prices under renewed pressure
Asking prices in England and Wales fell 0.6% during the month and 4.2% over the year, while typical time on market shortened to 124 days.
This is the September 2009 edition of the Home Asking Price Index, released on 14 September 2009, under the headline:
House Prices Under Renewed Pressure
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 fell by a further 0.6% this month.
- Market house prices fell in all English regions except Greater London, Wales and Scotland.
- Asking Prices in England and Wales have fallen 4.2% over the last year.
- Meanwhile, the typical marketing time fell from 135 to 124 days over the last month (median), the shortest so far in 2009.
Summary
Confidence amongst sellers has been further eroded this month as asking prices failed to sustain their mid-summer highs. Falls in all regions of England (except Greater London), Wales and Scotland clearly illustrate that the UK property market remains fragile and under pressure from the general economic malaise. Overall the spring bounce in asking prices hit a ceiling in July and has lost ground since then. Mortgage credit remains in short supply as Banks and Building Societies remain justifiably nervous about the economic outlook. In view of this and the growing jobless counts, UK house prices may have much further to fall (see Comment section).
There is also widespread evidence of lower initial pricing of properties for sale, as, despite fewer on-market reductions, average prices are still falling. Asking prices of 43,445 homes on the market were cut in the month of August, many fewer than the number of reductions recorded for July (53,123). The value of the average price cut in August also fell from May's figure of £18,240 to £16,657.
Key figures
| Measure | Figure |
|---|---|
| Average asking price | £240,499 |
| Monthly change | -0.6% |
| Annual change | -4.2% |
| Typical Time on Market | 124 days |
| Average Time on Market | 214 days |
| Price reductions in August | 43,445 |
| Price reductions in July | 53,123 |
| HAPI index | 98.6 |
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 Housing Markets
| Current average price | 3month change | |
|---|---|---|
| Greater London | £334,654 | 0.7% |
| East Anglia | £243,746 | 0.2% |
| Yorkshire and Humber | £171,059 | 0.0% |
| South West | £254,447 | -1.0% |
| West Midlands | £191,292 | -1.0% |
| East Midlands | £171,321 | -1.0% |
| South East | £274,038 | -1.3% |
| North West | £177,310 | -1.5% |
| Wales | £180,842 | -1.6% |
| North East | £158,287 | -2.4% |
| Scotland | £161,820 | -2.8% |
Regional Asking Prices for September 2009, showing gains and losses since June 2009.
Read the full September 2009 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 2009 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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