Home Asking Price Index, September 2017: London falls drag down price growth to near zero
England and Wales asking prices dipped 0.1% month on month in September 2017, with annual growth slowing to 3.5% as London, the South East and East weakened.
This is the September 2017 edition of the Home Asking Price Index, released on 12 September 2017, under the headline:
London Falls Drag Down Price Growth to Near Zero
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
- Greater London prices drop again, this month by 0.6%, taking prices back to little above their September 2016 levels.
- Across England and Wales average home prices dip again by 0.1% month-on-month but remain up 3.5% year-on-year.
- Prices slide for a third consecutive month in the East of England as this formerly red-hot market slows under the twin burdens of high prices and rising supply.
- East Midlands continues to lead the regional growth table with annualised gains of 6.7%.
- The West Midlands, East Midlands and the South West are the most improved markets over the last 12 months as indicated by reduced Time on Market figures.
- Supply figures indicate significant Year-on-Year (YoY) increases in the South West and East.
- Typical Time on Market rises by three days to 87 days, two days less than in Sept 2016 (England and Wales).
- The total number of properties on the market in England and Wales remains down by 4% YoY.
Summary
With the key markets of London, the South East and the East of England in, or headed for, the doldrums, the UK property market is clearly entering a more difficult period. Not only prices are under downward pressure, rents are now showing declines in all three regions. Low growth and falling returns in these regions will ensure that the overall picture remains one of stagflation going forward.
However, the UK property market shows remarkable diversity at the regional level and several well-performing regions continue to attract significant investment. The East and West Midlands continue to prosper. Prices are rising over and above the rate of inflation and supply remains restrained in both regions. The North West and Yorkshire are still gaining additional momentum. The North East and Wales show confident monthly price rises too, both up 0.5%.
Scottish home prices jumped an unseasonal 1.5% over the last month. Such valuations appear highly optimistic against a backdrop of rising marketing times and falling rents.
Key figures
| Measure | Figure |
|---|---|
| Average asking price (England & Wales) | £306,140 |
| Monthly change (England & Wales) | -0.1% |
| Annual change (England & Wales) | 3.5% |
| Typical Time on Market (England & Wales) | 87 days |
| Total unsold stock change YoY (England & Wales) | -4% |
Figures are for England and Wales unless the report states otherwise, as published in the edition.
Charts from the report
Source: Home.co.uk, September 2017
Source: Home.co.uk, September 2017
Source: Home.co.uk, September 2017
Source: Home.co.uk, September 2017
Source: Home.co.uk, September 2017. Note: Average = Mean (days), Typical = Median (days)
Regional tables
UK Asking Prices, Sep-17
| Region | Average Asking Price | Monthly % change | Annual % change |
|---|---|---|---|
| Scotland | £184,137 | 1.5% | 3.4% |
| North East | £157,472 | 0.5% | 1.4% |
| Yorks & The Humber | £188,970 | 0.2% | 4.3% |
| England & Wales | £306,140 | -0.1% | 3.5% |
| North West | £193,877 | 0.3% | 3.9% |
| West Midlands | £236,484 | 0.5% | 5.3% |
| East Midlands | £223,311 | 0.2% | 6.7% |
| East | £358,392 | -0.1% | 5.7% |
| Wales | £191,974 | 0.5% | 3.1% |
| Greater London | £536,383 | -0.6% | 0.3% |
| South East | £405,889 | 0.1% | 3.9% |
| South West | £321,679 | -0.1% | 4.7% |
UK Time on Market, Sep-17
| Region | Average Time on Market | Typical Time on Market | Annual % supply change |
|---|---|---|---|
| Scotland | 226 | 102 | -5% |
| North East | 232 | 116 | -3% |
| Yorks & The Humber | 175 | 94 | -1% |
| England & Wales | 155 | 84 | 2% |
| North West | 178 | 98 | -4% |
| West Midlands | 140 | 76 | -1% |
| East Midlands | 134 | 75 | 1% |
| East | 110 | 67 | 12% |
| Wales | 230 | 121 | -9% |
| Greater London | 137 | 83 | 3% |
| South East | 116 | 73 | 4% |
| South West | 139 | 77 | 17% |
The edition's headline bullet gives the England & Wales Typical Time on Market as 87 days; the map page prints 84, which is what this table carries.
From the director's commentary
"The UK property market remains bipolar but now the tide has turned against London and the South and East in favour of the North and West."
Doug Shephard, Director at Home.co.uk
Read the full September 2017 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 September 2017 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
Thinking about your next move?
See what your home's worth in seconds, with the UK's longest-running property data behind it.
Get an instant valuation