1 September 2011

Multiple Bank Holidays hit transactions as sales cool down, buyers pay 91% of the asking price.

The average asking price for homes in London declined in June by 8% as the usual summer slowdown hit the market earlier than previous years due, in part, to the extended bank holiday period.


Data from the Move with Us Residential Market Review Quarter Two 2011 revealed that in comparison with other regions in England, the property market in London has remained relatively buoyant, due to the strong demand for properties in the popular city.


Asking prices peaked in April to an average of £346,000 before falling back in May and settling at £339,000 in June. Since the beginning of 2011, the percentage of the asking price paid in London has fluctuated somewhat, peaking at over 100% in February and dropping to 94% in the following month. In June an average of 91% of the asking price was achieved.


The Move with Us Residential Market Review Quarter Two 2011 is produced in conjunction with Home.co.uk. Information from more than 3,500 property sales completed by Move with Us together with data derived from around 800,000 property listings from Home.co.ukis analysed. The latest report covers sales in the second quarter of 2011 along with comparative data from the previous quarter.


Ben Greco, group economist for Move with Us, says: “As to be expected London’s affluent property market is proving to be very resilient in these testing times and it is bucking some of the negative trends that are affecting other parts of the country. Over the next six months we would expect to see further upward pressure on house prices as the number of new listings coming onto the market in London shows no signs of increasing and hence the competition for available property increases.”

1.     The Move with Us Market Review has been compiled using the statistics for over 3,500 property sales completed by Move with Us and data derived from around 800,000 property listings supplied by Home.co.uk covering sales in the first six months of the year.

2.     The 3,500 Move with Us sales were residential property sales on behalf of UK mortgage lenders, solicitors, probate practitioners and house builders in the last six months.

3.     The figures from Home.co.uk are calculated every month using around 800,000 UK property listings found in the Home.co.ukProperty Search Index. This figure represents the majority of the property for sale on the open market in the UK at any given time.

4.     The average house price data is also published as the Home.co.ukAsking Price Index (HAPI) which is produced in association with Calnea Analytics: the statistical consultancy responsible for the production of the official Land Registry House Price Index.

5.     The HAPI is the UK’s only independent forward market indicator as it is based on asking price data which means the index can provide insights into price movements around five months ahead of mortgage completion and actual sales data – thus making it the most forward looking of how price indices.

6.     Average asking price and percentage of asking price achieved at sale show how buyers and sellers are setting and agreeing changes to prices in the market – house prices below £20k and above £1m are excluded from the calculations.

7.     Average days to sell represents the median number of days needed for all vendors to sell a residential property and demonstrates the relative strength of the market based on how quickly buyers act when agreeing to purchase.

8.     The number of new listings represent the majority of all new properties listed by estate agents each month.

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