Home.co.uk's Asking Price Index

Data

Home.co.uk publishes its monthly Asking Price Index, which is compiled using asking prices from more than 700,000 properties, the majority of homes for sale in the UK. Properties above £1m and below £20,000 are removed from the calculations to avoid skewing the figures. Information, which is supplied by property market research and data firms, includes regional variations, comparisons between asking prices month to month and over longer periods including three months and a year.

Method

To compile Home.co.uk's Asking Price Index Landmark Analytics (formerly Calnea Analytics) uses a weighting system, which is based in the Government's Survey of English Housing Stock (published March 2006), which allows for a regional breakdown of the figures. The Bank of England estimates that asking price data is around six months ahead of HM Land Registry data and three to four months ahead of mortgage approval data (Halifax and Nationwide).

Disadvantages

• Data based on asking prices rather than actual completed sales, information should be used as an indicator of how the property market is likely to perform over the coming months rather than as an accurate reflection of how much homes actually sell for
• Auction properties not included
• Not seasonally adjusted

Advantages

• Because it is based on asking prices it provides a current snapshot of property market sentiment and is therefore a key forward indicator as to how market transactions will perform over the coming months
• Unlike surveys provided by building societies and professional organisations the survey is independent
• The Home Asking Price Index is compiled from the largest monthly dataset available
• Takes into account price reductions whilst on the market

Verdict

A robust piece of research which provides a useful indicator of the way the housing market is heading over the coming months