This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at https://www.theguardian.com/money/2016/jun/14/newly-launched-land-registry-official-house-price-index-fall-london
The article has changed 3 times. There is an RSS feed of changes available.
| Version 1 | Version 2 |
|---|---|
| New official house price index reveals falls in oil industry areas | New official house price index reveals falls in oil industry areas |
| (2 months later) | |
| The collapse in global oil prices has sent house prices tumbling in areas reliant on the UK’s North Sea oil industry, according to a new official house price index. | The collapse in global oil prices has sent house prices tumbling in areas reliant on the UK’s North Sea oil industry, according to a new official house price index. |
| By contrast, well-off residents of the City of London, who include the flat-dwellers of the Barbican estate, have seen their properties soar in value by more than 27% in the space of 12 months, with gentrifying east London neighbourhoods such as Walthamstow not far behind. | By contrast, well-off residents of the City of London, who include the flat-dwellers of the Barbican estate, have seen their properties soar in value by more than 27% in the space of 12 months, with gentrifying east London neighbourhoods such as Walthamstow not far behind. |
| The new government-published house price index replaces the previous indices published by the Land Registry and the Office for National Statistics (ONS). It shows that the average cost of a UK home nudged up by 0.6%, or £1,300, in April to reach £209,000. | The new government-published house price index replaces the previous indices published by the Land Registry and the Office for National Statistics (ONS). It shows that the average cost of a UK home nudged up by 0.6%, or £1,300, in April to reach £209,000. |
| However, for many observers what will stand out are the huge variations in prices across the country. The index reveals the local authority areas that have seen the biggest price increases and falls – and the “bottom five” includes three locations whose fortunes are closely linked to the North Sea oil industry. These are the city of Aberdeen, where the average house price fell by 10.4% in the year to 30 April, to reach £173,761; the Orkney islands (a 6.9% annual fall to £122,033); and Aberdeenshire (a 6.3 fall to £189,796). The bottom five table was headed by Merthyr Tydfil, where prices fell by 11.1%, while in the mid-Wales county of Ceredigion prices were down by 7.4%. | However, for many observers what will stand out are the huge variations in prices across the country. The index reveals the local authority areas that have seen the biggest price increases and falls – and the “bottom five” includes three locations whose fortunes are closely linked to the North Sea oil industry. These are the city of Aberdeen, where the average house price fell by 10.4% in the year to 30 April, to reach £173,761; the Orkney islands (a 6.9% annual fall to £122,033); and Aberdeenshire (a 6.3 fall to £189,796). The bottom five table was headed by Merthyr Tydfil, where prices fell by 11.1%, while in the mid-Wales county of Ceredigion prices were down by 7.4%. |
| When it comes to the “top five”, the City of London topped the table, with annual price growth of 27.3%. The average property price there in April was £928,217. The City of London has a resident population of about 7,000, around 4,000 of whom live on the Barbican estate. | When it comes to the “top five”, the City of London topped the table, with annual price growth of 27.3%. The average property price there in April was £928,217. The City of London has a resident population of about 7,000, around 4,000 of whom live on the Barbican estate. |
| Slough in Berkshire was in second place with annual growth of 25.2%. Slough is said to be one of the chief beneficiaries of “the Crossrail effect”, in reference to the new rail link for London and the south-east that will be known as the Elizabeth line when services begin in 2018. | Slough in Berkshire was in second place with annual growth of 25.2%. Slough is said to be one of the chief beneficiaries of “the Crossrail effect”, in reference to the new rail link for London and the south-east that will be known as the Elizabeth line when services begin in 2018. |
| The London borough of Waltham Forest, which includes Walthamstow, located at the north-east end of the Victoria line, was in third place with annual growth of 25%. | The London borough of Waltham Forest, which includes Walthamstow, located at the north-east end of the Victoria line, was in third place with annual growth of 25%. |
| In March, London-based estate agency Foxtons said it expected Walthamstow to become as important for its business as affluent Pimlico, located at the other end of the London Underground line. In fourth and fifth place respectively were Thurrock in Essex (22.4% annual growth) and the London Borough of Barking and Dagenham (22.3% annual growth). | In March, London-based estate agency Foxtons said it expected Walthamstow to become as important for its business as affluent Pimlico, located at the other end of the London Underground line. In fourth and fifth place respectively were Thurrock in Essex (22.4% annual growth) and the London Borough of Barking and Dagenham (22.3% annual growth). |
| When it comes to London as a whole, some homeowners might be in for a shock. It suggests property values in the capital have fallen dramatically – though this is more likely due to a different way of crunching the numbers. | When it comes to London as a whole, some homeowners might be in for a shock. It suggests property values in the capital have fallen dramatically – though this is more likely due to a different way of crunching the numbers. |
| The index puts the average price of a home in London at £470,025, which it said was 14.5% higher than a year earlier. But this figure bears little relation to the most recent average-price data issued by the two government agencies. | The index puts the average price of a home in London at £470,025, which it said was 14.5% higher than a year earlier. But this figure bears little relation to the most recent average-price data issued by the two government agencies. |
| According to the most recent Land Registry report, which covers March, the average cost of a home in the capital was £534,785, while the most recent ONS figures, also for March, put the figure at £552,000. | According to the most recent Land Registry report, which covers March, the average cost of a home in the capital was £534,785, while the most recent ONS figures, also for March, put the figure at £552,000. |
| The apparent discrepancy is not directly addressed by those behind the new index, though the ONS said: “The introduction of improved methodology and data sources has led to differences in published prices when comparing the new UK house price index with the previous house price indices. However, when comparing the respective trends over time, the three series show very similar trends.” It added that the formula used by the old ONS index was “sensitive to extreme property values, and as a result the prices can be skewed upwards by high-value property”. | The apparent discrepancy is not directly addressed by those behind the new index, though the ONS said: “The introduction of improved methodology and data sources has led to differences in published prices when comparing the new UK house price index with the previous house price indices. However, when comparing the respective trends over time, the three series show very similar trends.” It added that the formula used by the old ONS index was “sensitive to extreme property values, and as a result the prices can be skewed upwards by high-value property”. |
| The new index, simply called the UK House Price Index, has been produced jointly by the ONS and the Land Registry, and aims to offer a more accurate picture of prices across the UK. | The new index, simply called the UK House Price Index, has been produced jointly by the ONS and the Land Registry, and aims to offer a more accurate picture of prices across the UK. |
| It states that average UK prices rose by 0.6% in April, taking the typical property value to £209,054. Annual house price inflation was said to be running at 8.2%, though this rises to 9.1% in England. | It states that average UK prices rose by 0.6% in April, taking the typical property value to £209,054. Annual house price inflation was said to be running at 8.2%, though this rises to 9.1% in England. |
| The Land Registry and the ONS have traditionally calculated their indices in different ways, which may explain why their conclusions have often been very different. The ONS said the average cost of a UK home in March was £291,820, while the Land Registry reported that the average house price in England and Wales was £189,901. | The Land Registry and the ONS have traditionally calculated their indices in different ways, which may explain why their conclusions have often been very different. The ONS said the average cost of a UK home in March was £291,820, while the Land Registry reported that the average house price in England and Wales was £189,901. |
| “Work has been taking place over the past two years to develop a single, official HPI that reflects the final transaction price for sales of residential property in the UK,” said a Land Registry spokeswoman. | “Work has been taking place over the past two years to develop a single, official HPI that reflects the final transaction price for sales of residential property in the UK,” said a Land Registry spokeswoman. |