What is house price index
According to The Financial Times Lexicon, House price index is a measure of the prices at which dwellings are bought and sold over time. Rightmoves index highlights changes in house prices both annually and monthly, providing an in depth view on the current state of the property market in England and Wales. The index focuses on property asking prices listed on their website and like Nationwide and Halifax only focuses on property for sale right now by measuring asking prices, it does not reflect what buyers actually pay.
Key Points April
- Buy-to-let investors who got their deals done before stamp duty leave higher prices for first-time buyers.
- Modest May rise of 0.4% (+£1,118) in price of property coming to market in the last month masks nasty spring surprise for first-time buyers.
- An 80% uplift in March transaction numbers has left behind a property drought and price surge:
– 6.2% (+£11,298) monthly jump in price of typical first-time buyer properties
– Strong demand continues in this sector despite withdrawal of many investors following introduction of higher stamp duty taxes, yet new-to-the-market supply is down 1.5% year-on-year.
- First-time buyer regional hotspots led by Croydon, Dartford and Luton, all with annual surges of over 18%.
For the full House price index visit Rightmove or click here to download the May 2016 HPI