The methodology used by the Nationwide to compile its house price index is to be changed from next month, with more reliance being placed on data submitted by mortgage applicants.
The move comes as a result of Nationwide no longer having on-the-spot valuations of some properties for which it is considering offering mortgage loans.
The small print of the latest house price index released this week reveals the details of the change:
“We will continue to follow the same type of statistical approach (known as ‘hedonic regression’) to calculate house prices. However, as a result of planned changes to our mortgage application process we may no longer commission physical mortgage valuation reports for all cases and so in future will source more information from customer application data. As we may not have complete or consistent information for a number of property attributes (floor area, type of garage and number of bathrooms), these variables will no longer be used in the index.”
The new methodology will not render invalid the old house price indices produced by the Nationwide, although the index says there will be some ‘joining factors’ - jargon for small changes in data - which will be undertaken to allow historical comparisons.
In future, Nationwide will publish - as now - monthly UK house price data and, every quarter, a regional breakdown too. The data will include a broad brush analysis of prices across all properties, and prices relating to two types of mover, the first timer and the owner occupier.
Nationwide will also produce quarterly figures based on different property types, and on new and existing homes.
The not-for-profit Residential Property Surveyors Association wants estate agents to tell...
The Nationwide says house prices have edged up 0.1 per cent...
Annual house price growth has fallen for the first time since...
Annual house price growth slowed to single digits in September and...
It’s tempting to think that Michael Gove’s proposed clampdown on Airbnb-style...
Councils across England could make an additional £540m a year in...
The vast majority of negligence claims against conveyancers are for relatively...
You don’t have to simply accept things as they are when...
From the uptick in house sales in January to a house price...
Happy birthday to us….and all members of the The ValPal Network! We...
With a combined value surpassing £7.4 trillion, the UK’s 29 million...
Let's be honest – landlords are the lifeblood of any letting...
%20-%20IMAGE%20Client%20Accounting%20%E2%80%93%20what%20are%20your%20options.jpg)
The benefits for letting agents to outsource their client accounting is...
When almost all agents and developers use the tried and tested formula...
I think we can all agree that the National Trading Standards...
.png)
As domestic battery storage systems become increasingly prevalent in UK homes,...
.png)
A team from The ValPal Network joined industry Facebook ads expert...
.png)
In this interview, Riccardo Dawson, Chief Operating Officer at Alto and...
A client account is essential to your lettings business, but the...
%20(002).png)
In today's fast-paced and ever-evolving property industry, it’s essential that forward-thinking...
As electric vehicles increasingly populate our roads and the necessity for...
Estate agency has changed. No longer is it required to sit in...
As estate agents, it is important to make sure that your...
Changes to consumer behaviour usually arrive in waves. Most of the...
At iamproperty we are excited to share the announcement of our...
In an exclusive interview with Estate Agent Today, Simon Coaker, Sales &...
It’s no secret – 2023 is a difficult year for the...
2023 has been coined as ‘the year of AI adoption’, and...
%20(002).jpg)
There are a few common questions that arise when the issue...
As a signage company we know we have a serious responsibility...
The Government’s mini budget on September 23 was anything but ‘mini’...
Agent websites have become more crucial than ever in attracting new...
Interesting report this week in Estate Agent Today on an analysis...
An anti-money laundering (AML) expert has queried why there is a...
MPs have launched an inquiry on improving the home buying and...
MPs have launched an inquiry on improving the home buying and...
The Law Society is facing backlash from conveyancers after issuing new...
An anti-money laundering (AML) expert has queried why there is a...
Who are you and what does it say on...
Who are you, and what does it say on...
Who are you and what does it say on your...
Join the conversation
Jump to latest comment and add your reply
Automated valuations can be very useful, if done correctly. They don't necessarily have to replace on-the-spot valuations, but they're the next best thing. And they're often very accurate. Certainly the ones I've used in the past have been.
Seems sensible. As the world becomes increasingly digital, property needs to move with it. Automated valuations offer a quick and easy way to get an instant price for your house. I have no idea how accurate it is - I imagine this varies depending on who the instant valuation tool belongs to - but I think it's a sensible move by Nationwide to include this.
Not a bad idea at all. If a physical, on the spot valuation is not possible, an instant automated valuation is the next big thing. And they're mostly very reliable and accurate.
Similar sentiments to others here. Automated valuations can be a great tool when used correctly. We have them pride of place on our website and have only received positive feedback with regards to their accuracy and usefulness.
Alongside Nationwide's existing data, I think it's a necessary addition.
Please login to comment