UK House Price Indices System Should Be Reviewed

The latest house prices indices showed that the current system is confusing for both, buyers and sellers.

Let us remind that the property prices indices for February 2011 published by Nationwide and Halifax differed by 1.2%.

Commenting on the significant gap between the figures, Mr. Boulger of John Charcol, well-known mortgage broker in UK, said that the reason for that is different data and different periods.

He is strongly determined that the most accurate house prices index is published by Land Registry because its sample is the largest. However, this index is rather historic as it is "based on when details of completed sales are reported to the Land Registry." Meanwhile, Nationwide and Halifax' indices are less comprehensive yet more timely.

Mr. Bougler called for the British Government to somehow increase clarity in house price indices. This can be easily completed in the framework of the current review of house price indices.

Detailed information about UK house prices in February is available on our website.

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