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Markit Buys Halifax House Price Index From Lloyds

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http://www.markit.com/Company/Media-Centre

Halifax House Price Index to be acquired by Markit
London and New York, NY – Markit, aleading global diversified provider of financial information services (Nasdaq: MRKT), today announced that it has agreed to acquire the Halifax House Price Index from Lloyds Banking Group.Halifax has been publishing the index monthly since 1983 and will continue to do so on behalf of Markit.

As part of the transaction, Markit will acquire the index and all associated intellectual property.Markit will also become the index administrator.To ensure a smooth transition, the index name and methodology will remain unchanged when the transaction completes, which is expected later this year.

Markit will calculate and administer the Halifax House Price Index in compliance with the Iosco Principles for Financial Benchmarks, while Lloyds Banking Group will be the submitter to the Halifax House Price Index in compliance with the same principles.
Stephen Noakes, managing director, retail customer products at Lloyds Banking Group, said: “We believe Markit is an ideal partner to take on the administration of the Halifax House Price Index given they are a globally renowned index provider.We already work successfully with Markit on the Lloyds Bank Regional Purchasing Managers’ Index.”

Tim Sargent, managing director and global head of indices at Markit, said: “The Halifax House Price Index is a leading barometer of the UK’s property market.We look forward to compiling the index and working with the industry on opportunities to develop financial products based on the housing market.”

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Having worked in financial tech for a while, can I advise against choosing brand names like "Markit"??

Me: "So where do you get the price data?"

Trader: "Markit"

Me: "Which market?"

Trader: "No, Mark - it"

Me: "Who marks it? You don't mark it..."

Trader: "No, no... Mark - Eye - Tee"

Me: "Mark from IT?"

etc .... I'm not an idiot :) but sometimes other people reduce me to this level.

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Why?!

Presumably its just based on mortgage transactions...which Markit does not offer.

We already have LR data as a more all encompassing source.

Why an earth would someone buy this? Markit does predictions doesnt it (in the case of credit swaps and credit ratings, woefully inadequte ones leading up to 2008)

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If it's not nailed down...

Whatever happened to the plans for 'cheap' public share offerings.

Nick Clegg. Nuff said.

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http://www.theguardian.com/money/2015/mar/10/halifax-sells-off-house-price-index

It has been a key barometer of the UK property market for more than 30 years, but now the Halifax House Price Index has been sold to a leading provider of financial data.

Markit, a London-based company listed on the Nasdaq index in the US, has paid an undisclosed sum for the house price index, which is published monthly by the Halifax. It is the UK’s longest running monthly house price series, with data covering the whole country going back to January 1983.

However, the nation’s property market watchers have been reassured that it will be business as usual after the deal completes later this year. The index will continue to be published by the Halifax and carry the bank’s branding, and the methodology will remain the same for the short term at least.

Explaining the reason for the sale, a spokeswoman for the Halifax, part of Lloyds Banking Group, said the house price index was originally launched as a tool for the media, but over the years had developed into a major financial benchmark that was widely used by external companies and organisations.

Anyone know what they paid for it? Over inflated as house prices themselves?

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It is interesting that the actual index is an asset. I can't work out if it's the marketing or the data is actually used somewhere and charged for eg in valuation models. Anyway as the name is not changing I suppose it is the advertising.

When there is a quite week they do some 'research' on their data and release something (normally the BBC puts it on their website) showing x town is the place to buy.

Cheers for posting.

Edited by Ash4781

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It is interesting that the actual index is an asset.

Is it? Outside of publishing 'statistics', prehaps skewed ones, how does it represent an asset?

Perhaps 1 million sets of sold prices per annum... setting a trend, standard devation, blah blah.

I suppose it's the most important metric to all the folk living life on the scraps left after their big mortgage payments, so maybe a powerful marketing tool?

meh

Edited by cashinmattress

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I think this is very good news. It's not just about the stats but about the cover text that goes out with each PR release. It was always in Halifax's interests, as in Nationwide's, to put a sugar coating on bad house price news and to "hide" poor months. IIRC they even "massaged" the figures by introducing quarterly moving averages to hide the euphemistic "dips". After all, the Halifax would literally lose business if the housing market looked to be a poor investment.

Now that Markit own it, I can't see why they should be similarly biased - indeed, the value of their data would increase the more openly accurate it is. In fact, I have a feeling the Halifax sold it off precisely because they think the index is going to go negative for some time and they don't want to connect the Halifax brand with a "bad news" index.

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mikthe20, interesting angle on it. It's painfully obvious how biased Halifax & Nationwide & Savils et al are when they come out with cherry-picked stats. Maybe Halifax are "letting go" of the past and moving into a new era. It also makes me wonder (again) what lenders and EAs really think of the future of house prices. It must piss them off no end that people are inexorably getting poorer and poorer, yet they (EAs/lenders) rely upon a daftly-priced product to survive. Credit is being offered cheaper and cheaper, but fewer people are taking it up. Deflation is on the way / here. Uber and AirBnB and P2P lending show how unnecessary EAs / lenders really are. The future is very very very uncertain if you're in the housing market - you WILL be disintermediated eventually, and even if you can fix it that you can't be, your target market is dwindling anyway.

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Markit @Markit

Today @Markit takes over as owner and administrator of the Halifax House Price index #houseprices #property http://******/1VvgTk0

Halifax House Price Index

Markit owns and acts as administrator for the Halifax House Price Index, the UK’s longest running house price index series. The Halifax House Price Index is a key barometer of UK house prices based on Halifax mortgage transaction data and has been calculated since January 1983. It is closely watched by economists, central banks, financial markets and the media.

Product Summary

Markit has established a governance and control framework which incorporates the creation, determination and distribution of the Halifax House Price Index in order to protect and maintain the integrity of the indices and address any conflicts of interest.

Markit is responsible for the calculation, administration and distribution of all of the indices that comprise the Halifax House Price Index family. Markit also owns the Halifax House Price Index, while the headline UK All Houses All Buyers Index is sponsored by Halifax. There are no changes to either the index methodologies or index names or identifiers.

Markit maintains all responsibility for the index administration in relation to Halifax House Price Index including chairing all index governance committees and maintaining all documentation in respect of each index administered by Markit.

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