Halifax House Price Index
House Prices in January 2021
The average UK house price in January 2021 was £251,968 a fall of 0.3% from December 2020's record high
House prices fell by 0.3% during the last month
House price increased by 5.4% over the last year
Halifax House Price Index Chart
Halifax House Price Index Commentary
Average house prices rose by more than £1,000 per month over the last 12 months according to the Halifax House Price Index this will be a great comfort to homeowners as we stay at home during the COVID pandemic. We might not be bringing in the bacon as usual, but our homes are certainly earning their keep. There may also be good news ahead for homebuyers, as both the Halifax and the Nationwide expect house prices to soften as the Stamp Duty Holiday ends. House prices may therefore fall more in the coming months than the stamp duty savings they missed out on. The end of the stamp Duty Holiday could be a blessing in disguise, rather than something to be feared..
The Halifax believes that there are some early signs that momentum in the UK housing market could be running out of steam as the Stamp Duty Holiday ends and much of the economy remains locked down. Rising unemployment will put downward pressure on UK house prices, but mildly falling house prices may not be a bad thing for buyers and recent gains are unlikely t fully unwind for homeowners.
How much is my house worth?
If you would like to quickly see how much your house is worth you can do so by visiting twindig.com we have details of every house across the country, all 28 million, not just the one million or so that are currently for sale or rent
Halifax House Price Index Publication dates
- Friday 5th March 2021
- Friday 9th April 2021
- Monday 10th May 2021
- Monday 7th June 2021
- Wednesday 7th July 2021
Halifax House Price Index methodology
Lloyds Banking Group is the sole source of data for the Halifax House Price Index. The index is based on mortgage approval data provided by Lloyds Banking Group.
In order to provide a robust measure for UK house prices the Halifax House Price Index removes or excludes several types of mortgage transaction from the index:
- Business use, capital raising, or building mortgages
- Discounted mortgages relative to market value where the property valuation is deemed to be less than 75% of the purchase price for instance in the case of many Right to Buy house purchases.
However, to better reflect the structure of the UK housing market, since 2019 the Halifax House Price Index has included shared ownership mortgages
The Halifax House Price Index is calculated by estimating the price of a fixed 'basket' of houses sold, not unlike the way the retail and consumer price indices are calculated by the Office of National Statistics (ONS).
The Halifax House Price Index uses a number of different property characteristics to determine the standardised house referred to in its house price index and average house prices. The idex takes into account the following property characteristics:
Property type: Lloyds Banking Group attributes a property type to each mortgage approval and mortgage offer: Detached, semi-detached, terraced, flat, bungalow
Property size: The Lloyds Banking Group mortgage data includes the size of each property in square metres. Typically the bigger the property the higher its price
Number of bedrooms: The number of bedrooms a residential property has impacts the price of the home as well as its overall size.
Age of home: The Halifax House Price index finds that in the main, new homes tend to attract a price premium over older homes with similar attributes. This could be due to a number of factors including improving building regulations and standards, warranties and energy efficiency. New homes are also likely to need fewer repairs and have lower maintenance costs than newer homes and this gets reflected in the relative prices of the homes.
Location: It is often said that house prices are all about 'Location, location, location' and this belief turns out to be true. The Halifax House Price index looks not only at the main nine regions within England (North East, North West, Yorkshire & Humberside, East Midlands, West Midlands, East England, South East, South West and Greater London), Scotland, Wales and Northern Ireland, but also at the house price differences between postcode districts to improve the accuracy of its house price index.
The Halifax Building Society launched its House Price Index in January 1983, which makes it the longest-running monthly house price index in the UK.