What Is the UK House Price Index?

Page 1

What Is the UK House Price Index?

ZUNE TH

S AT TA R


What Is the UK House Price Index? The UK House Price Index (HPI) gathers house sales data from a range of UK bodies: HM Land Registry in England, Registers of Scotland, and the Land and Property Service Northern Ireland.

2

The Statistical Model behind the HPI Gathered to track the rate of inflation of house prices in the UK, the HPI applies the ‘hedonic regression model’ as its statistical method to produce estimates of house price changes for each period. The HPI is published every month, with quarterly updates for the Northern Ireland figures. Including low-sales areas can produce volatility in the HPI estimates, so regions that have a low number of house sales are analysed in the context of their longer-term trends rather than their monthly movements.


Coronavirus and the UK HPI The COVID-19 pandemic affected the various bodies that feed information to the House Price Index. Therefore, over the affected period the UK HPI has not been as complete as it would usually be. The data that has been gathered by the UK HPI is accurate; however, the results may be revised as more data is entered into the statistical model.

Zuneth Sattar

T HE SE CIRCUMS TANCE S COINCIDE WI T H CHANGE S T O T HE PL ANNING SYS T EM T O MAKE I T QUICKER AND E ASIER T O BUIL D OR DE VEL OP NE W HOME S , AS WEL L AS PERMI T T ED DE VEL OPMEN T RIGH T S BEING CRE AT ED T O ENABL E MORE UNUSED BUIL DINGS T O BE REPURPOSED AND REDUCE T HE RISK F OR DE VEL OPERS.

3


FOR FURTHER INFORMATION ABOUT THE PROPERTY MARKET, VISIT THE BLOG OF ZUNETH SATTAR.


Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.