Property Knowledge Property Questions & Answers
Q A
Which house price survey should I believe?
With sometimes conflicting reports from the media, how can you really
know what is occurring in the UK housing market?
A house price index is a collection of key statistics that track the movement of house prices. Te majority of the indices in the UK, are published at the end of each month, or shortly aſter. Virtually every other day, house price surveys make the headlines from various organisations, but they oſten appear to move in different directions. Te bigger the change, the bigger the headline breaking news.
Te reason for this variation in house price index, is that they all use different data and do different things with it, to produce their results. So, here is a guide to the house price indices from recognised organisations.
Te Land Registry Survey works by comparing completed house sale prices of the 15 million properties on its register, to the amount that they were valued at in 1995, thus calculating the indexed difference in price. Tis means that this only measures the change in the price of properties that have been sold before, to ensure a proper comparison. Tis index includes cash purchases, as well as mortgage data, but excludes repossessions and property transfers from a divorce. One drawback of this Index, is that the data can be 2 to 4 months old.
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Te Government has its own monthly house price index, issued by Te Department for Communities and Local Government (DCLG). Its data is supplied by the Council of Mortgage Lenders and covers a large sample of completed sales, with a mortgage, which means that cash purchases are not included. Tis index evaluates house price data from 2 months, previous and covers a broader analysis of the housing market, as there are 340 different lenders in the Council of Mortgage Lenders.
Te Nationwide and Halifax Price Index, two of the UK’s biggest mortgage lenders, produce their own survey each month, based on a sample of each lender’s mortgage approvals, but not completed sales. Tese statistics ignore cash purchases.
Te Rightmove Survey collects asking prices, from houses placed on its own website, over the previous month. It does not reflect the prices at which properties actually sell.
Te Royal Institution of Chartered Surveyors (RICS) House Survey offers something slightly different to other indices. Te Housing Survey it publishes each month, highlights trends in the housing market, based upon the opinions of its members, not on the actual property sales data. It is more of a snapshot of professional opinions about the housing market, rather than a statistical report. It is a rapid ‘front line’ information survey providing a more immediate indication of housing trends
and professional opinion. Te RICS Housing Market Survey, is the longest running monthly survey of house prices in the UK, having collected data since 1978. Te Survey is cited by the Bank of England’s monetary policy committee, at its monthly interest rate setting meetings. A housing index survey, regardless of its source, may be able to indicate what is happening to the value of property across the UK, but will not factor in local influences.
Q A
At what point should I insure the property I am going to purchase?
You will need to have Buildings Insurance for a new home from
the moment you exchange contracts. Contents Insurance should begin on the day you move into your new property, to protect your belongings.
Your solicitor will inform you as soon as contracts have been exchanged and the date set for completion, and once you have this information you will then be in a position to finalise your Buildings Insurance and Contents Insurance for your new home.
concerned?
Q A
Tere is no actual market research or evidence to qualify the concern that
certain house numbers have an impact on value. Individuals rarely admit to being openly affected by their fear of numbers, known as arithmophobia.
In the UK, number 13 has been a contentious number with would-be buyers. Highly sought after numbers are 8 (good fortune) and the number 9 (long life) being in high demand for the Chinese. Generally speaking, having 40 years’ experience in the property industry, the number 13 does not in any way affect the value of the property.
I’m considering buying a house numbered 13. Should I be
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