Prices push on up, as property drought continues
The latest Home.co.uk Asking Price Index (HAPI) for July 2015 has been released. The report demonstrates a number of factors from within the UK residential property market, including asking price, stock and supply trends, as well as time on market.
This month’s report has revealed that:
- Prices move up 0.4% overall in England and Wales during the last month
- East of England prices rise the most this month, up 0.7% since June
- Average time on market for England and Wales drops to 177 days; the lowest figure since November 2008
- The South East remains the UK’s fastest regional market, with a typical time on market of 59 days
- Supply of property for sale remains low across the UK; down by 6% (June 2015 vs. June 2014)
- The average annual home price appreciation for England and Wales slips to 5.7%
- Signs of oversupply in the North East as asking prices slide by 0.8%
A resurgence of buyer demand continues to drive prices higher, predominantly in London and the South of England, bolstering confidence amongst vendors. Marketing times continue to fall in most parts of the country; consequently, the average time on market for England and Wales is now the lowest we have seen since November 2008.
The UK property market is in good shape overall. Property supply remains behind buyer demand in most regions as evidenced by falling time on market figures. In Greater London, where marketing times showed a worrying increase earlier in the year, a post-election buyer resurgence has taken up the slack. Only in the North East region, where the recovery is still in its infancy, do we see a significant rise in supply (up 6% compared to a year ago) and this has served to make prices dip this month.
The Prime Central London market is showing signs of renewed momentum. After a prolonged period in the doldrums, prices there have indicated a new upward trend since May and time on market figures are beginning to fall.
Time on market data for the regions shows that the northern markets of Yorkshire and the North East are the most improved over the last 12 months, recording decreases in typical time on market of 9% and 6% respectively. However, they remain among the slowest markets when compared to the rest of the UK. It is only London and the southern regions that show marketing times indicating a similar vigour to the property market pre-crisis.
Overall, the current mix-adjusted average asking price for England and Wales is 5.7% higher than it was in July 2014, and we expect only minor price rises towards the end of this year.