The latest official UK house price statistics claim that the average house price now stands at £208,476.
The figure is from the Government’s Communities and Local Government department and covers the month of August.
But the figure is a baffling £46,129 higher than the average house price figure for the same month, reported by the Government’s other official index, the Land Registry.
The Land Registry quotes an average price of £162,347 for England and Wales.
But the CLG index concedes that if you stripped out London and the South-East house prices, then the average UK house price in August was £171,640.
According to CLG, house prices have come down by 1.3% over the year – in England by 1.2%, in Wales by 0.3%, in Scotland by 1.5% and in Northern Ireland by 4.3%. The only region where house prices increased was London, where they rose by around 3%.
The CLG index also claims that prices paid by first-time buyers were 1.8% lower in August than a year ago, but that prices for new properties were 9.2% higher.
The CLG report was immediately attacked as misleading.
Nick Hopkinson, director of property company PPR Estates, said: “The latest Government analysis shows average house prices falling nationally over the last year by around 2%.
“This headline data is very misleading as it includes the millionaire enclaves in London where prices have boomed due to cash-rich foreign investors buying to protect their wealth.
“New-build house prices are only up because developers are starting to focus more on larger, more expensive family homes. Most new-build city centre flats are worth 20% less than they were three years ago.
“The hidden reality behind the national average numbers is that many properties outside London have seen prices fall by over 10% in the last year.
“With the current Euro debt uncertainties, the wider economy flirting with recession again and inflation squeezing the Great British middle classes ‘till the pips squeak’, it’s difficult to see any real prospects of house price growth in the foreseeable future for most of us.”
Meanwhile, the RICS seemed to agree. See next story.
Comments
Absolutely Honest John, I couldn't give a fudge what DCLG or Acadametrics say. The LR is by the far the most transparent HP index. Their methodology is straight-forward and unequivocal.
That would be the Daily Express, whose owner, Richard Desmond, has £500million invested in property. They wouldn't get an advance copy of the Land Registry, but as media they do for the Halifax and Nationwide reports. The last Halifax survey showed a fall of 0.5% - that morning the Daily Express ran a story on the front page about low mortgages making this an incredible time to invest in property.
Normally, such a clear case of vested interest as displayed regularly by the Daily Express could be referred to the Press Complaints Commission. The PCC is, amazingly, a voluntary scheme for the media to adhere to and the Daily Express has refused to join it.
Their property correspondent, Sarah O'Grady, is married to an MP who narrowly escaped facing a police investigation during the expenses scandal, in particular related to property accounting.
In times gone by, the behaviour and publishings of the Daily Express would have gone by another name. I'll call it for what it is though - propaganda, pure and simple.
The land registry is the only price survey of real sales ! all the others are guessing and biased, the daily mail always have a front page story of house prices rising the day before the land registry report a real fall ! inside knolledge ?
No bob - you are referring to early retirement.
I'm on about your 'job & finish' problem... ;o)
I was thinking Scary actually PeeBee. You might be right though. Wonder if we can ask them to scan their passports and send them into Rosalind?
PeeBee - finishing early is very common in the over forties you know.
rant: It's Ginger, of course!
Most common chinese spice according to the menu I'm looking at... ;o)
bob: "...now where do i start?"
How about at the end. Get it over with quickly - which is what I am sure your significant other is well accustomed to...
Statistically, one in five people on this planet are Chinese. This leads us to the immediate question of which of the Spice Girls was Chinese.
ahhhh. me again, now where do i start?
I look at the bank statement, ponder the balance, and understand this 'stat'. MY STAT !! up on last year.
Hard bloody work, but helped by the dodgy corporates and the almost out of control rental market.
Stats, who cares?
not the bloke at 1 Acacia Ave who is selling, and not Silly Bob who is buying it.
Meaningless
Stato is right.
Otherwise how did we end up witth (at least) three different definitions of an HMO in different Statutes and at least two different definitions of a Resident landlord?
We had this debate months ago on this forum about how the Nationwide and Halifax stats could also be so different in terms of increased or lower % agescin terms of house price. They are always different because they use different factors and above all because NBS is southern based and Halifx northern.
But their own individual results are correct based on the data they use in relation to that data.
It's like meat - some is white and some is red but that doesn't stop it all being meat.
Yawn!
Current completed transaction levels near me appear to be between a quarter and a third of normal.
One house at a low or high price can really skew the figures.
If 8 out of 10 cats prefer Whiskers, and my 2 cats prefer Felix, have I got 8 neighbours whos cats prefer Whiskers?
I sit in the loo contemplating this endlessly on Sunday mornings.
Whoever attacked these statistics should be ashamed. Before you attack something you need to know what you are talking about.
The CLG and Land Registry HPI have different definitions of average, so of course they are going to be different!
Just so you know there are a huge number of equally valid definitions of 'average'. Just look on wikipedia if you need a refresher. Arithmetic mean, geometric mean, harmonic mean etc. The difference is only "baffling" if you don't understand basic stats!
Simples. They have made a mistake. Government Departments do you know. Just look at the Planning Reform debacle.
I had a bloke in yesterday from the ONS who wants to use certain statistics from this office to help calculate the rate of national inflation. When I asked him why the CLG figures were so much higher than Land Reg data, he didn't have a clue.
If the Office of National Statistics don't know why these figures are so different, you've really got to wonder how it is calculated at all.
Lies, damn lies....
National statistics have never meant much and always mislead. They cause confusion in the local market, whether stated price percentages are up or down. Regional or Area - thats different.
"it’s difficult to see any real prospects of house price growth in the foreseeable future for most of us"
And that must be the only good news for most of us.
National statistics should be banned.