Consultation on Definitive House Price Index
October 9, 2014
The Office for National Statistics has launched a consultation seeking input from “users” on the proposal of developing a single definitive house price index.
As I have blogged about previously, there is not a precise house price index as all of the current indexes source their data differently.
The move to a single, UK-wide, index would help end the confusion caused by the contrasting data thrown up by the current indexes.
This move follows the National Statistician’s Review of House Price Statistics, where it was recommended that a single definitive house price index should be produced.
The proposals include measuring house prices at completion of sale; measuring both house prices and house price inflation; doing so at least monthly; and offering figures as both “seasonally adjusted” and “unadjusted”.
Interestingly the proposed House Price Index would include owner-occupation and buy-to-let purchases as well as repossessions, but would exclude remortgages and purchases by sitting tenants.
There is an online questionnaire to complete and a summary of comments will be published around 12 weeks after the consultation closes on December 12.
I am glad that the government is looking at producing a definitive House Price Index as a report of official house price data will be massively beneficial to the market.