Posts with tag: nationwide house prices

Nationwide’s Price Index Changes to Reflect More Automated Valuations

Published On: July 7, 2015 at 9:26 am

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Nationwide is changing the methodology used to compile its house price index from next month, with more reliance being placed on data submitted by mortgage applicants.

Nationwide's Price Index Changes to Reflect More Automated Valuations

Nationwide’s Price Index Changes to Reflect More Automated Valuations

This is due to Nationwide no longer conducting physical valuations of some properties for which it is considering offering mortgage loans.

The small print of its latest house price index, released last week, details 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.”1

The new methodology will still respect the old house price indices produced by Nationwide, although the index says that there will be some joining factors – small changes in data – which will be conducted to allow historical comparisons.

In the future, Nationwide will still produce monthly UK house price data and a regional breakdown every quarter. The data will include a broad analysis of prices across all properties and prices relating to two types of mover: first time buyers and owner-occupiers.

Nationwide will also publish quarterly figures based on different property types, and on new and existing homes.

1 https://www.estateagenttoday.co.uk/breaking-news/2015/7/nationwide-changes-price-index-to-reflect-more-automated-valuations

Nationwide House Prices to Outperform London

Published On: April 14, 2015 at 2:33 pm

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Categories: Property News

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Property prices around the UK will surpass those in London this year, housing analysts expect.

House prices are predicted to increase by 1.5% nationwide, but drop by 3.6% in the capital in 2015. This would be the first time in six years that the rest of the UK outperforms London.

These forecasts come from the Centre for Economics and Business Research (CEBR), which says the changes will come after “years of over-performance”.1

The fall in London prices are not expected to last for long and by 2016, values are predicted to rise by 2.7% in the capital and 2.3% around the UK.

Nationwide House Prices to Outperform London

Nationwide House Prices to Outperform London

The CEBR explains that the London property market is more likely to be affected by concerns over the general election, but that long-term, underlying issues such as the economy and housing supply will push prices higher.

CEBR economist Nina Skero says: “Outside of London, the outlook for house prices this year has improved after a few months when the market appeared to be coming off the boil. December’s Stamp Duty changes, as well as rising household incomes, are lifting prices in many parts of the UK.

“In London, however, we expect prices to decline by 3.6%, driven by a significant weakening at the prime end of the market. A potential mansion tax, reduced overseas interest and hefty new Stamp Duty rates have hit demand for high value property.”1

In January, the CEBR expected house prices in the UK to decrease by 0.6% this year, but it has now amended this estimation, citing Stamp Duty reforms, which have made it cheaper for the majority of payers, and the immediate affect they have had.

After the property market recovered in 2014, London prices increased by 17.4%, and the rest of the UK experienced rises of 10%.1

At the end of 2014, experts reported a more equal housing market around the UK, as price increases spread out from London to other parts, as buyers moved away from the capital.

Buyers became wary of stricter mortgage lending criteria and high asking prices.

CEBR claims that demand from foreign investors in the London market has been affected by the strength of the pound against the euro, the possible mansion tax, and higher Stamp Duty for high-end London homes.

It also says that they expect prices to drop in London, as there are fewer buyer enquiries and houses are taking longer to sell.

They reveal that the drop in overseas buyers affects the rest of the UK a lot less than London, and that those living outside the capital are benefitting from the Stamp Duty changes.

1 http://www.theguardian.com/business/2015/apr/13/uk-wide-property-to-outperform-london-analysts-forecast