A new combined House Price Index (HPI) has been launched by the Office for National Statistics (ONS) – The monthly report shows average house prices, a House Price Index (HPI) for England, Scotland, Wales and Northern Ireland. This replaces the previous House Price Indices produced separately by ONS and Land Registry.
The index is a monthly report on UK house price changes using data from around the UK – The Land Registry, Registers of Scotland and Land and the Property Services Northern Ireland.
The new report brings all the property price statistics into one place which means the report should be of more practical use to practitioners. It now includes figures for cash-buyer sales and new-builds.
Headline statistics for April 2016 (published 14 June 2016):
- the average price of a property in the UK was £209,054
- the annual price change for a property in the UK was 8.2%
- the monthly price change for a property in the UK was 0.6%
- the monthly index figure for the UK was 109.6 (January 2015 = 100)
Indications are that strong demand is outstripping supply in recent months. But following higher rates of Stamp Duty Land Tax and Land and Buildings Transaction Tax on additional properties in England, Wales, Northern Ireland and Scotland, there are signs of cooling in the market in April 2016. However, this follows a period of increased activity prior to the changes. Data from the Royal Institution of Chartered Surveyors (RICS) suggests that in April 2016, buyer demand contracted for the first time following continuous growth since March 2015.
Indicators of supply in the housing market were more mixed. The Bank of England’s Agents’ Summary of Business Conditions for May 2016 reported a shortage of secondary market housing supply, while RICS reported that general supply (new instructions to sell) continued to fall in April. However, the latest ONS Output in the Construction Industry release indicated that new-build housing output increased by 3.4% in the previous three months (January to March) compared to the same period a year earlier.
Source: Land Registry / ONS June 2016
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New House Price Index https://t.co/edabuaiKAT
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