Nationwide House Price Index
House Prices in January 2021
The average UK house price in January 2021 was £229,748
House prices fell by 0.3% during the last month
House price increased by 6.4% over the last year
Nationwide House Price Index Chart
Nationwide House Price Index Commentary
House price fell for the first time in six months in January 2021, possibly reflecting a tapering of demand as the scheduled end of the Stamp Duty holiday approaches. Nationwide also reported home-ownership rates increased for the third year in a row to 64.6%. Interestingly more than half (54%) of the 15.4 million households in England own their home outright. Perhaps if Stamp Duty reform is required a sales tax rather than a purchase tax should be considered.
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.
Nationwide House Price Index methodology
The Nationwide house price index is calculated from owner-occupier house purchase transactions which are in part-financed by a mortgage. Buy to let and cash purchases are not included in the Nationwide House Price Index.
The monthly house price measures the mix adjusted house price for houses across the UK.
The Nationwide uses a statistical process called hedonic statistical regression to calculate the average UK house price.
The nationwide takes into account the following factors when calculating its house price index:
UK location - which part of the country the house is located
Size of property - the physical size of the property, larger houses usually a command a higher price
Number of bedrooms - once again a higher number of bedrooms normally implies a higher price. The Nationwide looks at five types 1 bedroom, 2 bedrooms, 3 bedrooms, 4 bedrooms and more than 4 bedrooms.
Property type: The Nationwide house price index considers several different house types: detached homes, semi-detached homes, terraced houses, flats and apartments.
Neighbourhood characteristics: The Nationwide classifies homes as being included in one of 59 different neighbourhood categories (such as retirement neighbourhoods or council /social housing neighbourhoods)
The index is 'mix-adjusted' so that changes in the number of different sized properties sold each month doesn't impact the average house price. For instance, if one month more 4 bedroom detached houses were sold than normal this may increase the reported average house price necessarily.
The Nationwide house price index is based on the mortgages it approves itself. The Nationwide is the UK's second-largest mortgage lender with a market share of around 15%.
Seasonal adjustments. The Nationwide believes that house prices are slightly seasonal, house prices are typically higher in spring and summer months. This ebb and flow of demand can impact house prices by up to +/-1.5%. The Nationwide House Price Index adjusts for its view of seasonal factors
History of the Nationwide House Price Index
The Nationwide House Price index has been running on an annual basis since 1952, a quarterly basis since 1974 and from 1991 on a monthly basis. This makes it the longest-running private house price index in the UK and the second longest-running monthly house price index (after the monthly Halifax house price index which has been running since 1983.
Alongside its monthly house price index, the Nationwide publishes a more detailed index each quarter including 13 regional house price indices by buyer type (first-time buyers and former owner-occupiers). The Nationwide also publishes UK house price estimates based on four different property types: detached houses, semi-detached houses, terraced houses and flats and apartments.
The final set of house price indices produced by the Nationwide Building Society relate to new and existing homes.
In total the Nationwide produces 48 different house price indices on a quarterly basis.