Question

[dog]

Can anyone explain how the 'you are here' house price graph on the home page is calculated? Is it based on cost per square foot?

[dog]

Can anyone explain how the 'you are here' house price graph on the home page is calculated? Is it based on cost per square foot?

[Goat]

Can anyone explain how the 'you are here' house price graph on the home page is calculated? Is it based on cost per square foot?

I think its just average inflation adjusted price.

[dog]

Thanks! I suspected the same. If this is true, a curve based on a price per unit area would be much more dramatic.

[London Landlady]

I wish they would update it - or show the scale on the bottom axis.

[mercenarul]

I wish they would update it - or show the scale on the bottom axis.

LL, Who exactly is they?

Maybe you could collect the data and update it yourself, then submit ti to webmaster.

[classixuk]

I wish they would update it - or show the scale on the bottom axis.

I'm not sure how "they" update it, but I believe that the graph stopped reporting in Q3 2004. The figures from Nationwide for "UK Houseprices adjusted for inflation" since then are :

q3 2004 = £159,139

q4 2004 = £156,580

q1 2005 = £156,501

q2 2005 = £159,472

q3 2005 = £158,987

Perhaps that why they haven't updated it? There's nothing to report. House prices adjusted for inflation are lower in Q3 2005 than they were in Q3 2004, which is what the graph up there suggests would happen anyway.

Maybe if prices rise above Q3 2004 then they may update the graph to alert people that there might not be a crash after all (I say Q3 2004 as that is when most peeps on this site say that the crash began).

Hope that helps.

[AteMoose]

Nationwide provide this dataset in excel, along with a chart on the second page...

http://www.nationwide.co.uk/hpi/downloads/...r_inflation.xls

[dog]

I'm not sure how "they" update it, but I believe that the graph stopped reporting in Q3 2004. The figures from Nationwide for "UK Houseprices adjusted for inflation" since then are :

q3 2004 = £159,139

q4 2004 = £156,580

q1 2005 = £156,501

q2 2005 = £159,472

q3 2005 = £158,987

Perhaps that why they haven't updated it? There's nothing to report. House prices adjusted for inflation are lower in Q3 2005 than they were in Q3 2004, which is what the graph up there suggests would happen anyway.

Maybe if prices rise above Q3 2004 then they may update the graph to alert people that there might not be a crash after all (I say Q3 2004 as that is when most peeps on this site say that the crash began).

Hope that helps.

Thanks for this.

Years ago, planning authorities had quite strong views about what qualified as habitable space. I believe that the old 'back to back' properties were banned for this type of reason. Starter homes in the 60's could easily qualify as third homes today. The impression I get is that 'the smaller the better' is now the rule for local authorities (presumably it enables them to collect more council tax per square foot). I am staggered by how tiny houses have become. Minute 4 bed detached houses are being being crammed onto new estates in vast numbers and people are living like sardines.

I have suspicion that the overpricing of houses is much worse than we think. How many earnings multiples does a 1000 square foot home cost today compared with 30 years ago?

[Lou G]

I wish they would update it - or show the scale on the bottom axis.

If we are at the bottom, how come a normal 3 bed semi here is £ 300-£325k.!! when the average wage must be around £20k.?

PS - These 3 bed semis were £120k to £135k in 2001..!!

Good time to buy, don't think so.!

[Michael]

If we are at the bottom, how come a normal 3 bed semi here is £ 300-£325k.!! when the average wage must be around £20k.?

PS - These 3 bed semis were £120k to £135k in 2001..!!

Good time to buy, don't think so.!

Hang on in there, Lou!.....All previous crashes ...(most of them were only crashes in inflation-adjusted terms) were triggered off by bad economic news.......and something bad will occur this time..It may take years..as the low inflation that keeps IRs low also fails to erode away mortgage debt like it has previously.......so a nasty economic shock even in 7 or 8 years' time could upset the apple cart...........

Edited November 23, 2005 by Michael

[Time to raise the rents.]

Something I was wondering recently. Is the graph showing the average real house price for the UK worked against CPI inflation, or RPI?

I was wondering that because it occured to me that the graph may be overtstating the real price if RPI was replaced with CPI years ago when the MPC began tracking that stat.

RPI has been consistently higher than CPI & therefore the graph may be wrong.

[foxytrader]

If we are at the bottom, how come a normal 3 bed semi here is £ 300-£325k.!! when the average wage must be around £20k.?

PS - These 3 bed semis were £120k to £135k in 2001..!!

Good time to buy, don't think so.!

Lou

They won't be at that price for long. Walk down Albert Street today and you will see some very long faces busily arranging to sell Herbalife products or mobile phones when the axe comes.

Check Primelocation and see what they have actually sold for. No house in the area deemed by some to be the best in Harrogate - bordering Valley Gardens- has sold for more than £423k in the last 5 years. These include several 7 bedroom semis and terraces and freeholds on houses split into 3 flats.

There is a lot of tosh written - check the sold prices. I said to an EA the other day that I was willing to offer on a 7 bedder but wasn't willing to pay the record price for property in that area - many of the houses are exactly the same and approximately 5 come on the market each year so there is enough data to make a cogent case. If you are interested make an offer at 80% of the best price actually paid (not offered). The vendor will refuse it - then make the same offer less 10k in February and watch them bite your hand off.

Realism is creeping in.

See you at Hotel du Vin sometime!

[Lou G]

Lou

They won't be at that price for long. Walk down Albert Street today and you will see some very long faces busily arranging to sell Herbalife products or mobile phones when the axe comes.

Check Primelocation and see what they have actually sold for. No house in the area deemed by some to be the best in Harrogate - bordering Valley Gardens- has sold for more than £423k in the last 5 years. These include several 7 bedroom semis and terraces and freeholds on houses split into 3 flats.

There is a lot of tosh written - check the sold prices. I said to an EA the other day that I was willing to offer on a 7 bedder but wasn't willing to pay the record price for property in that area - many of the houses are exactly the same and approximately 5 come on the market each year so there is enough data to make a cogent case. If you are interested make an offer at 80% of the best price actually paid (not offered). The vendor will refuse it - then make the same offer less 10k in February and watch them bite your hand off.

Realism is creeping in.

See you at Hotel du Vin sometime!

Think we should do a Northern pub meet some time, nice to talk to like minded people, shame we are a rare breed.!!. Interesting you mention the valley gardens, my parents use to live in a lovely georgian house opposite the pump room, nice spot. They decided to sell after the last crash, it was on for a year and they couldn't shift it, rented it out in the end before trying a few years later to sell, sold it in 2000. Shows you prime location stock in difficult times can stuggle.!

Interesting that when we were in Beadnalls quite a while ago one of the directors said to us "well it could all end in tears".!!

Think we could be in for a bit of a wait but hey hoy, pretty happily renting at the moment...

Lou..