New Official House Prices Index launched

Thursday 16 June 2016

On 14 June 2016 the new Official House Prices Index (HPI) was launched. The index replaces those previously produced by the Office for National Statistics, Land Registry, Land and Property Services Northern Ireland and Registers of Scotland. The aim of the index is to provide an authoritative and comprehensive picture of house prices across the UK.

The new HPI shows that average house prices have increased by 8.2% in the UK in the year to April 2016. This is down 0.3% from 8.5% in the year to March 2016. Here are some of the key findings:

Average house price by country:

Country

Increase in house price over
the year to April 2016 (%)

Average house price (£)

England

9.1%

£224,731

Wales

1.7%

£139,385

Scotland

3.3%

£138,445

Northern Ireland

5.9%

£117,524

House price index by English region:   

London continues to be the region with the highest average house price at £470,025, followed by the South East (£301,689) and the East of England (£263,420). The lowest average price is in the North East at £121,719.

House Price Index, by local authority district:

The local authority showing the largest annual growth in the year to April 2016 was City of London, where prices increased by 27.3% to stand at £928,217. The lowest annual growth was recorded in Wales in Merthyr Tydfil, where prices fell by 11.1% to stand at £82,000.

In April 2016, the most expensive borough to live in was Kensington and Chelsea, where the cost of an average house was £1,314,702. In comparison, the cheapest place to purchase a property was Burnley, where an average house cost £72,584.

Number of sales by country:

Country

Feb 2015

Feb 2016

Difference (%)

England

56,261

56,884

1.1%

Wales

2,686

2,796

4.1%

Scotland

5,113

5,507

7.7%

Northern Ireland

4,555

5,272

15.7% 

*Due to a period of 2 to 8 weeks between completion and registration of sales, volume figures for the most recent two months are not yet complete, so they are not included in the report.

Average price by property type:

Property type

April 2015 (£)

April 2016 (£)

Difference (%)

Detached

290,900

310,364

6.7%

Semi-detached

181,200

197,168

8.8%

Terraced

157,103

171,298

9.0%

Flat or Maisonette

173,968

187.793

8.0%

All

193, 225

209,054

8.2%

The new HPI uses different methodology to address limitations with the previous house price indices published by Land Registry and ONS. It now includes both cash sales and new homes in the calculations to provide full coverage of the housing market.

New build and existing resold property in the UK:

Property Status

Average Price (£)

Monthly change (%)

Annual change (%)

New build

£254,604

4.6%

10.2%

Existing resold property

£205,914

0.3%

8.0%

Cash and mortgage payments:

Funding Status

Average Price (£)

Monthly change (%)

Annual change (%)

Cash

£198,492

0.0%

7.3%

Mortgage

£218,490

0.9%

8.8%

*These figures are for Great Britain only, Northern Ireland data is not available for funding status

As a result there are differences in published prices when comparing the new UK HPI to the previous HPIs. However, when comparing the respective trends over time, they show very similar trends.

See the ONS' summary of the latest data here

See the full data and the new interactive online tool developed by Land Registry here