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Release: House Price Index, June 2014

Released: 19 August 2014 Next edition: 16 September 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 10.2% in the year to June 2014, down from 10.4% in the year to May 2014.

  • House price annual inflation was 10.7% in England, 3.5% in Wales, 6.0% in Scotland and 4.9% 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 an annual increase in London of 19.3% and to a lesser extent increases in the South East (9.7%) and the East (7.9%).

  • Excluding London and the South East, UK house prices increased by 6.3% in the 12 months to June 2014.

  • On a seasonally adjusted basis, average house prices increased by 0.5% between May and June 2014.

  • In June 2014, prices paid by first-time buyers were 12.0% higher on average than in June 2013. For owner-occupiers (existing owners), prices increased by 9.5% 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 (974.4 Kb Pdf) , 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 June 2014 are published this month. The monthly and quarterly reference table (3.47 Mb Excel sheet) has been updated to include data for June 2014 and the second quarter of 2014.

Revisions this month

April and May 2014 data have been revised this month to incorporate transactions from those lenders that provide data on a quarterly basis. There are small revisions to the seasonally adjusted series for the last 12 months, which are expected from the monthly seasonal adjustment process.

Revisions next month

The July 2014 HPI will incorporate changes from the annual review of the seasonal adjustment process. This review may lead to small revisions to the seasonally adjusted series going back to February 2002.

Taking forward the recommendations from the National Statistician's review of UK house price statistics - August 2014 announcement

In November 2013 it was announced that the four producers of official house price statistics (Land Registry; Office for National Statistics; Registers of Scotland and Land & Property Services, Northern Ireland) were continuing to investigate options for the production of a single definitive UK House Price Index (HPI). This work was triggered in response to a recommendation from the 2010 National Statistician’s Review of House Price Indices.

During 2014, work has focused on reviewing the available data sources and developing a methodology that would allow a collaborative production of a new, definitive HPI. This work had a clear goal to identify options for a HPI that would produce coherent house price data at the UK, national, regional and sub-regional level, and covering all UK private residential housing market transactions.

A draft methodology has been identified and each of the above organisations has agreed that the work should progress to a consultation phase, where users of house price statistics will be invited to comment on the intention to develop a new HPI and the proposed methodology to be used.

The consultation will allow the proposed methodology to be refined where necessary and to firm up the development costs for the production and implementation of a new HPI. These costs will then be considered by each department against ongoing priorities and resource constraints before a final decision is taken to implement the new HPI. Depending on the outcome of this decision, it is anticipated that a new HPI would first be published in early 2016.

The consultation will be published in September 2014 and will provide users with details of the proposed methodology, data sources, plans for production and publication, and the effect the new HPI will have on the publication of current HPIs (assuming the new HPI development moves to publication).

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  

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 (3.47 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 June 2014 and scheduled quarterly revisions to April and May 2014 data to account for those lenders who provide data on a quarterly basis. The seasonally adjusted figures for the last 12 months in Table 7 have also been revised this month as scheduled. This month, tables 10 to 19 have been updated with the latest data for the second quarter of 2014.

ONS HPI annual tables (1.15 Mb Excel sheet) (number 20 to 39). This reference table contains all the annual live tables. No annual tables have been updated this month. 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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