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Release: House Price Index, May 2014

Released: 15 July 2014 (Latest) Next edition: 19 August 2014

Contact

Christopher Jenkins

Prices Division

christopher.jenkins@ons.gsi.gov.uk

Telephone: +44 (0)1633 455474

Categories: House Price Indices, Economy, Prices, Output and Productivity, Price Indices and Inflation, Housing and Households, Housing Market, People and Places

Frequency of release: Monthly

Language: English

Geographical coverage: UK

Geographical breakdown: Region

  • UK house prices increased by 10.5% in the year to May 2014, up from 9.9% in the year to April 2014.

  • House price annual inflation was 11.0% in England, 6.5% in Wales, 3.6% in Scotland and -0.7% in Northern Ireland.

  • House prices are increasing strongly across most parts of the UK, with prices in London again showing the highest growth.

  • Annual house price increases in England were driven by a record annual increase in London of 20.1% and to a lesser extent increases in the South East (9.6%) and the East (8.6%).

  • Excluding London and the South East, UK house prices increased by 6.4% in the 12 months to May 2014.

  • On a seasonally adjusted basis, average house prices increased by 0.8% between April and May 2014.

  • In May 2014, prices paid by first-time buyers were 11.3% higher on average than in May 2013. For owner-occupiers (existing owners), prices increased by 10.1% for the same period.

In this release

The ONS House Price Index (HPI), previously published by the Department for Communities and Local Government (DCLG) is a monthly release that publishes figures for mix-adjusted average house prices and house price indices for the UK and its component countries and regions. The index is calculated using mortgage financed transactions that are collected via the Regulated Mortgage Survey by the Council of Mortgage Lenders. These cover the majority of mortgage lenders in the UK.

The HPI statistical bulletin provides comprehensive information on the change in house prices on a monthly and annual basis. It also includes analysis by country, region, type of buyer (first-time buyers and former owner-occupiers) and type of dwelling (new dwelling or pre-owned dwelling). Historical series for all accompanying tables are also available in the data section of this release.

ONS has published Official House Price Statistics Explained, a guidance document that details the ONS HPI methodology and explains the differences between the different sources of official house price statistics.

New this month

New house price data for May 2014 are published this month. The monthly and quarterly reference table (3.44 Mb Excel sheet) has been updated to include data for May 2014.

Revisions this month

There are no revisions to data this month beyond the usual seasonal adjustment revisions.

Revisions next month

Small revisions are expected next month for the April 2014 and May 2014 HPI figures as scheduled. These reflect quarterly submissions delivered by a small proportion of mortgage lenders.

Taking forward the recommendations from the National Statistician’s review of UK house price statistics - update

In July 2013, it was announced that following agreement across the four producers of official house price statistics (Land Registry, Office for National Statistics, Registers of Scotland and Land & Property Services, Northern Ireland), a joint project would be initiated to consider the development of a single definitive UK House Price Index (HPI) from which official providers can report on their own areas of responsibility in a way that can be directly compared. This collaborative approach would hopefully allow the publishing of consistent HPI data at a national, regional and sub-regional level across the UK.

Since July, work has focused on assessing the current sources of data used in the production of official house price statistics and the feasibility of combining these sources to produce a single, definitive HPI. Whilst good progress has been made, further work is now required to investigate sources of property attributes data that would be required to supplement the current data and to begin assessing the different methodologies that could potentially be used to produce a definitive index. This additional analysis will take place during the next few months with the aim of identifying a suitable methodology and comprehensive source of property attributes data that could be used to produce the definitive HPI. Details regarding this analysis and any further development will be made available in the first half of 2014.

If you have any questions regarding the proposed development and the analysis taking place, please use the following email address to contact us: hpi@ons.gsi.gov.uk  

This update was first published in October 2013.

Index of Private Housing Rental Prices

On 26 June 2013 ONS published the Index of Private Housing Rental Prices (IPHRP). IPHRP is an experimental series that measures the changes in price charged for renting private housing in Great Britain. The index is calculated from rental prices collected by Valuation Office Agency, Scottish Government and Welsh Government, and includes price indices at country level and English region level. The latest publication of the IPHRP was published on 25 April 2014 and covers January to March 2014 data.

Data tables

ONS HPI monthly and quarterly reference tables (3.44 Mb Excel sheet) (number 1 to 19). This reference table provides full historical series for the monthly tables accompanying the House Price Index statistical bulletin. This month, tables 1 to 9 have been updated with the latest monthly estimates for May 2014. The seasonally adjusted figures for the last 12 months in Table 7 have also been revised this month as scheduled.

ONS HPI annual tables (1.15 Mb Excel sheet) (number 20 to 39). This reference table contains all the annual live tables. This month tables 20, 21, 29, 30, 35, 36, 37, 38 & 39 have been updated with 2013 data. The next set of updates to annual tables will be in March 2015.

ONS weights summary (74 Kb Excel sheet) . This reference table provides a summary of the aggregated mix-adjustment weights used in the production of the HPI for the period 2011 to 2014. The mix-adjustment weights are updated in the February HPI each year.

Content from the Office for National Statistics.
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