Uk House Price Dropped By 0.2% In February - Nationwide

[Converted Lurker]

Surprised this has been missed, where`s Realist bear?

UK house prices fell back slightly in February, according to the latest survey from the Nationwide building society.

The average UK house price dropped by 0.2% in the month, bringing down the annual rate of increase from 4.4% in January to 3.7% in February. The average house now costs £158,573. However, over the last three months prices have risen marginally.

http://firstrung.co.uk/articles.asp?pageid...1559&cat=44-0-0

[sign_of_the_times]

Surprised this has been missed, where`s Realist bear?

UK house prices fell back slightly in February, according to the latest survey from the Nationwide building society.

The average UK house price dropped by 0.2% in the month, bringing down the annual rate of increase from 4.4% in January to 3.7% in February. The average house now costs £158,573. However, over the last three months prices have risen marginally.

http://firstrung.co.uk/articles.asp?pageid...1559&cat=44-0-0

I think we covered it but none of the feb charts have been updated yet, think webmaster must be away ?

[kingofnowhere]

Surprised this has been missed, where`s Realist bear?

UK house prices fell back slightly in February, according to the latest survey from the Nationwide building society.

The average UK house price dropped by 0.2% in the month, bringing down the annual rate of increase from 4.4% in January to 3.7% in February. The average house now costs £158,573. However, over the last three months prices have risen marginally.

http://firstrung.co.uk/articles.asp?pageid...1559&cat=44-0-0

As there isn't much bad news First rung have to keep repeating any fall. This was last months figure, this months is out on Thursday IIRC

[Come On Down]

Surprised this has been missed, where`s Realist bear?

UK house prices fell back slightly in February, according to the latest survey from the Nationwide building society.

The average UK house price dropped by 0.2% in the month, bringing down the annual rate of increase from 4.4% in January to 3.7% in February. The average house now costs £158,573. However, over the last three months prices have risen marginally.

http://firstrung.co.uk/articles.asp?pageid...1559&cat=44-0-0

Old news. This has been covered!

The report by Nationwide was out a couple of weeks back.

[?...!]

The market is boring and flat. With a little noise on monthly figures.

Basically there is no money to make in property in the current climate.

Poor yields and no real gains, just a fashionable winebar anecdote.

Edited March 28, 2006 by ?...!

[HPCheese]

in the last six months, the number of buy-to-let mortgages in existence has grown by 11%

That'll be the last of the ultra-savvy hard-nosed investors then.

[othello]

Surprised this has been missed, where`s Realist bear?

UK house prices fell back slightly in February, according to the latest survey from the Nationwide building society.

The average UK house price dropped by 0.2% in the month, bringing down the annual rate of increase from 4.4% in January to 3.7% in February. The average house now costs £158,573. However, over the last three months prices have risen marginally.

http://firstrung.co.uk/articles.asp?pageid...1559&cat=44-0-0

This is old news -reported in Februrary. Are you by any chance "Only Me" on the FT HPC forum who just made a similar post!

[in2perspective]

I posted this on a previous thread...guess its relevant though...

"You may be interested to know that Nationwide was 2 years ahead of Halifax in showing the nineties house price falls...

Witness...Nationwide HPI and Halifax HPI.

Now, I dont want to get HPC readers too excited but if you look at that trend - Nationwide is quicker than Halifax in showing evidence of house price falls....then what do you think about this months HP stats....Halifax showed a nice 1.4% rise and Nationwide showed a.....modest 0.2% fall."

[geranium]

Is there a difference between the way Halifax calculates its average house price and the way Nationwide does?

I think both are based on the property "value" (ie what the buyer is paying in total) rather than the mortgage arranged, but then I remember something confusing about how adding a sum onto the mortgage to (say) add an extension could distort the average house price upwards.

Please help clarify, anyone who knows. Thanks

[kingofnowhere]

Is there a difference between the way Halifax calculates its average house price and the way Nationwide does?

I think both are based on the property "value" (ie what the buyer is paying in total) rather than the mortgage arranged, but then I remember something confusing about how adding a sum onto the mortgage to (say) add an extension could distort the average house price upwards.

Please help clarify, anyone who knows. Thanks

Hi

Nationwide, use to have a more southern bias in the way it calculted. Ie it had an extra region (Outer London) and so gave more weight. They now use weightings from DETR, to weght the Standard stat regions.

This is the reason they picked up the House price falls before Halifax in the early 90's

Now they are almost exactly the same, although there can be a difference because to the lenders, and so market they target. However this is too small to worry about.

[in2perspective]

Hi

Nationwide, use to have a more southern bias in the way it calculted. Ie it had an extra region (Outer London) and so gave more weight. They now use weightings from DETR, to weght the Standard stat regions.

This is the reason they picked up the House price falls before Halifax in the early 90's

Now they are almost exactly the same, although there can be a difference because to the lenders, and so market they target. However this is too small to worry about.

Thanks for that. We should put together a proper comparison of how the indices are compiled. Could you recommend any sources for this (other than the information on the Hal/Nat/ODPM/HT/RM sites).

Presumaby the ripple effect from London outwards is the reason why in the nineties Northern Ireland and Scotland didnt see price fall to the same degree as the rest of the UK is that their boom was stopped in its tracks. Given your point about the bias towards London in Nationwides historical data that would make sense?

[kingofnowhere]

Thanks for that. We should put together a proper comparison of how the indices are compiled. Could you recommend any sources for this (other than the information on the Hal/Nat/ODPM/HT/RM sites).

Presumaby the ripple effect from London outwards is the reason why in the nineties Northern Ireland and Scotland didnt see price fall to the same degree as the rest of the UK is that their boom was stopped in its tracks. Given your point about the bias towards London in Nationwides historical data that would make sense?

Hi there isn't really anywhere. Halifax if you ring them will give you a booklet with all the workings.

Basically Haliwide use hedonic regression to get their average price. Ie they break every house down into is parts Land, bedrooms, bathrooms, post code, garages,even to whether it's in a congestion charge. They then reconstruct the average house by saying 0.1% of the average london Bathroom etc.

This has the advantage that if the quality of the housing that sold either increases or falls it's not piked up in the numbers.

Also FWIW Nationwide run thier Monthly figures to the 15th and Halifax to the end. So Halifax is a slight leader on HPI.

Rightmove. Looks a the average asking price. Advantage is that its the leading indicator, the disadvantage is that if the quality of housing for sale rises or falls then its relfects this in the asking prices. Also another disadvantage is that is that if the sales sdiscount increases or falls it doesn't pick this up. (Excludes Scotland and NI)

Hometrack asks EA , so this is more subjective. They also don't always ask the same EAs so that can sometimes cause jumps. Also the EA when busy don't give hometrack a great priority. On the up side, it is suppose to show the agreed sales price so fits between Rightmove and Haliwide. Again it's a simple average and so makes no allowance for the mix of the sales changing.

L/R, has the largest Data set, however it has the least information. (All it has is detached, semi etc and where it is). Also it's a long way behind the market (up to 6 months behind rightmove). Therefore it's late reporting and doesn't give much allowance for the mix changing. IE if you sold a Gate house two bed detached for £10K one qtr and moved to the masion, 2 beds detached £1,000,000 next month. Then L/R wuld show this as 9,900% HPI. (However Haliwide would pick this up and adjust)