Home.co.uk: News: Short supply supports house prices November 2011 HAP Index

Home.co.uk: News: Short supply supports house prices November 2011 HAP Index

The mix-adjusted average asking price for homes on the market in England and Wales remains unchanged since October, according to the Home Asking Price Index from Home.co.uk.

Sellers who cut their prices cut deeper in October, knocking a total £1.3 billion off the UK’s property portfolio, says the UK’s only independent forward market indicator. Home prices fell in 7 out of 9 English regions and in Scotland and Wales during the last month, while Greater London and the South East showed gains.

The index, calculated using a weighting system based on the DCLG (formerly ODPM) Survey of English Housing Stock, finds that the autumnal slowdown in the UK property market is more acute this year than in 2010. Despite a fall in supply, homes are spending more time on the market and prices are flat overall. A total of 81,353 homes on the market had their prices reduced in October, with an average price reduction of £16,632 - the largest figure since December 2010.

Greater London and the South East are the exceptions to the gloomy national picture. Perhaps unsurprisingly, these property markets are relatively buoyant, benefiting the most from the financial bailout and foreign investment.