A pretty obvious question, you might think. And you’d be right. Yet there’s a surprising amount of uncertainty about the answer.
There are several house price indices which are popularly used in the UK: the Office for National Statistics produces one (previously run by the Department for Communities & Local Government, and hence often called the ONS/DCLG index), as does the Land Registry (the agency which logs all legal sales data). Big mortgage lenders like Halifax and Nationwide produce their own. And then there are those created by independent researchers such as Acadametrics, RICS, Rightmove and Hometrack.
A comparison of these measures shows that there’s quite a bit of variation between them (see below for a brief description of their methodologies). They all closely mapped the UK’s recession-driven price slide in 2008-09, but since then, their findings have become increasingly diverse: Read more