There is more than a hint of spring in the UK property market with property prices rising 0.5% since January and 2.6% over the last 12 months, according to the latest index to be published. An increase in lending is helping the market and the typical time that a property is for sale is falling, the new Home.co.uk Asking Price Index (HAPI) shows.
However, it also shows regional differences with the Greater London market outperforming the rest of the country with a rise of 1.5% since January and a 6% rise over the last 12 months. Neighbouring regions in the South East and East Anglia saw monthly rises of 0.9% and 0.5% respectively but prices have remained flat in the North and fallen in Wales, the North West and the North East since January.
The North West saw the worst annual price fall at 0.7% and the North East has by far the worst typical time on the market of 213 days. The firm says that the bi-polar nature of the UK property market looks set to continue in 2013. Year on year, asking prices have increased by 2.6%, not corrected for the effects of monetary inflation. The last two years’ data tracks the UK housing market recovery showing that the current median time on market for unsold property, has fallen seven days to 137 days since January, which the firm says is a highly significant 10 days less than in February 2012.
Quote from PropertyCommunity.com : “UK buyers accounted for the majority of property purchases in the prime market in London in 2012 but more foreign buyers are snapping up real estate in the UK’s capital city and this trend is set to continue.”
It points out that this represents a further positive change for UK property sales and suggests that market conditions are improving. ‘Supply of property to market remains far lower than pre-crisis levels and this has served to support prices while mortgage dependent demand has been lower,’ the index report adds.
Regional asking prices for February 2013 show a mixture of gains and losses since February 2012. In Greater London average asking prices are £364,247, a rise of 6.0%, in the South East they are £298,373, up 3.5%, in East Anglia they are £249,618, up 2.6% and in the South West they are £253,978, up 1.9%.
Wales has an average asking price of £174,133, an annual increase of 1.4%, in the East Midlands it is £173,373, up 1.3% and in the West Midlands £188,597, a rise of 1.1%. In the North East it is £152,033, up 1.1%, and in Scotland it is £159,391, a rise of 0.5% while Yorkshire and Humber has an average asking price of £167,098, a rise of 0.4% although in the North West it is £171,100, a fall of 0.7%.
The HAPI is produced in association with Calnea Analytics, the statistical consultancy responsible for the production of the official Land Registry House Price Index. The HAPI is the UK’s only independent forward market indicator. The published figures reflect current and historic confidence of buyers and sellers of UK property on the open market.
The HAPI is calculated every month using around 800,000 UK property house prices found in the Home.co.uk Property Search Index. This figure represents the majority of the property for sale on the open market in the UK at any given time.