Nationwide House Price Index

House Prices in August 2021

The average UK house price in July 2021 was £248,857

House prices rose by 2.1% during the last month 

House price increased by 11.0% over the last year

 

Nationwide House Price Index Chart

Nationwide house price chart Twindig Anthony Codling

Nationwide House Price Index Commentary

It was a surprise that house prices continued to rise in August, as the benefit from the stamp duty holiday was tapered in July 2021 we had thought that house prices may soften in August. However, a lack of homes for sale on the market has kept prices keen. The Stamp Duty holiday will come to an end at the end of September 2021, but until that time there is a maximum stamp duty holiday saving of £2,500 available, whilst this is good news, house prices have increased by almost £28,000 since the start of the Stamp Duty holiday. The stamp duty holiday winners are therefore those selling homes rather than those buying them  

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.