The average asking price in the East Midlands reached the highest level for five years in November, hitting £182,505, the data from residential property group Move with Us shows.
At a regional level, Greater London, the South East and the East Midlands were the top performing regions in the fourth quarter of 2013 in terms of asking price. Greater London saw a rise of 4.68%, the South East 1.03% and The East Midlands 0.65%.
Greater London continued to operate in its own bubble with the average property price increasing £52,535 in 2013 and selling times remain the fastest in the country although property listings were down 43% compared to the third quarter of 2013 and 7.55% when compared to December 2012. It was the only region not to experience any price reductions in December.
Overall there was a 48% drop in new listings for the whole of the country compared to the previous quarter. The report points out that whilst the market experiences a seasonal dip each year in December, listings in a year on year comparison are the lowest on record at 48,009, some 7.48% down on December 2012.
‘Although 2013 ended with a decline in the number of new listings due to the seasonal Christmas slowdown, the market has quickly picked up momentum and we are already seeing larger numbers of property transactions since the start of 2014,’ said Robin King, Move with Us director.
‘The problem right now is the shortage in the supply of new properties coming on to the market. While the government has incentivised building projects by providing a £1 billion fund to unlock housing developments, these are predominantly located in the North of the country in places such as Manchester and Leeds. Supply also needs to be stimulated in regions such as East Anglia and the South West and in places where there’s considerably higher demand for housing such as the South East, one of the most popular commuter routes into the capital,’ he explained.
‘The government could consider tax efficient ways to incentivise people with surplus space in their homes to downsize as this would free up family homes and create much needed fluidity in the market. Motivating people to sell second homes will also release existing stock back into the housing market. However, larger scale development is really where the difference can be made, like in the great depression of the 1930s when we managed to build 400,000 new properties per year,’ he added.
The number new listings in the South West dropped each month in the third quarter of 2013 and sellers reacted by increasing asking prices. By the last quarter of the year the average asking price flat lined and then declined in December in line with the seasonal trend. Irrespective of December’s slight downturn, average asking prices ended the year at £267,636, an increase of £12,949 since December 2012.
The average asking price in the South East increased every month in 2013, peaking in November at £318,529 before falling slightly during the festive season to £316,766. Despite this reduction, asking prices in the region in the fourth quarter were £20,449 or 6.90% up when compared to the same period in 2012.
In East Anglia, sellers increased asking prices until they peaked in November at £260,974 before falling slightly in December to £258,836. Despite the expected dip, average asking prices in East Anglia increased by £9,700 or 3.89% in December when compared with the same period in 2012.
The average asking price in the East Midlands peaked in November at £182,505 after increasing consistently in 2013, a feat only surpassed by Greater London. This marked the highest recorded asking price for the region since 2009 which the firm says is a promising sign for the East Midlands housing market.
House prices in the West Midlands dipped in November and December ending the year at an average of £195,424. Before then, however, asking prices in the region experienced rises almost every other month and overall the West Midlands saw positive growth of £6,836 or 3.63% over the last year.
After flat lining in the third quarter of 2013, the average asking price in Yorkshire and Humber dropped each month in the fourth quarter of 2013, falling by £1,268 or 0.75% in a quarterly comparison. The year ended with the average asking price in the region at £168,227.
Although the average asking price wavered slightly in the North West in the fourth quarter of 2013, it held strong in the declining December market and grew modestly by £1,350 or 0.77% compared to the same time in 2012. The average asking price for the region ended the year at £172,855.
In the North East the average asking price fell consecutively every month in the last quarter of 2013, dropping by an overall sum of £1,592 or 1.04% compared to the previous quarter and ending the year at £151,586. This is a decline of £1,023 or 0.67% when compared to December 2012.
Asking prices in Scotland continued to drop noticeably in the fourth quarter of 2013 following a dip in the third quarter of 2013, even in the face of reduced supply and less competition. The year ended with the average asking price at £157,039, the lowest average asking price recorded since 2009.
In 2013, the average asking price in Wales increased each month until November when it started to decline. By December, it dipped to £176,516 on average, following the typical seasonal pattern.
