Home Asking Price Index, September 2010: weight of home supply forces price drop
Asking prices in England and Wales fell 0.5% in the month to September 2010, while unsold stock in the UK rose 15% year on year.
This is the September 2010 edition of the Home Asking Price Index, released on 13 September 2010, under the headline:
Weight of Home Supply Forces Price Drop
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 dropped 0.5% over the last month.
- Monthly asking prices fell in 8 out of 9 English regions, Wales and Scotland.
- Total number of UK properties for sale has increased 15% since September 2009.
- The number of properties reduced in price during August fell back slightly to 83,000 from a 19-month high of 92,000 during July.
- Annual change in asking prices: -0.1%.
- 6-month change in asking prices: -0.1%
Summary
Prices of homes on the market finally yielded to considerable oversupply pressure over the last month. Price falls were evident across most of the UK with only the East Midlands registering no change. Price cutting remains highly prevalent but less so than the 19-month high recorded last month. House prices look set to fall further over the coming months as oversupply, lower buyer activity and 'doom and gloom' across the wider UK economy weigh heavily on the housing market.
Looking at the overall performance of the UK housing market across the last 12 months it has become clear that the market recovery stalled in April. Nominal asking prices have been stagnant since then, hampered by growing supply pressures. Taking into account non-housing inflation, house prices are still falling at an annual rate of 5-6% relative to goods and services.
Key figures
| Measure | Figure |
|---|---|
| Mix-adjusted average asking price (England & Wales) | £228,122 |
| Monthly change in asking prices | -0.5% |
| Annual change in asking prices | -0.1% |
| 6-month change in asking prices | -0.1% |
| Increase in UK properties for sale since September 2009 | +15% |
| Properties reduced in price during August | 83,000 |
| Typical (median) Time on Market | 105 days |
| Average (mean) Time on Market | 186 days |
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 | Q3 change | |
|---|---|---|
| North East | £154,334 | +0.5% |
| Greater London | £342,663 | -0.4% |
| East Midlands | £171,270 | -0.4% |
| South East | £285,161 | -0.6% |
| Wales | £177,025 | -0.7% |
| Yorkshire and Humber | £169,857 | -0.7% |
| South West | £251,880 | -0.8% |
| West Midlands | £189,585 | -0.8% |
| North West | £174,233 | -1.0% |
| East Anglia | £239,959 | -1.1% |
| Scotland | £160,463 | -1.9% |
| England & Wales | £228,122 | -0.6% |
Regional Asking Prices for September 2010, showing gains and losses since June 2010.
Read the full September 2010 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 2010 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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