January house price index change of 1.03%
The Land Registry released the house price index for January 2013 on 28 February, which showed a seasonally adjusted* monthly and annual change of 1.0%. The house price index now stands at 260.3, meaning that the average house price in the UK (£162,441) is 260.3% of the average price in January 1995 (or 2.603 times larger).
Property transaction volumes down
The index also contained the transaction volumes from August to November 2012, which show a further decrease on the same period in 2011; specifically, from 61,595 to 58,947 (–4.3%).
London changes much higher than rest of UK
The annual and monthly changes for London – 7.1% and 2.5% respectively – are considerably higher than elsewhere in the UK. At £373,207, the average house price in the capital is 2.3 times larger than the UK average.
How The House Price Index calculated
The House Price Index is calculated using the values of properties sold more than once since January 1995 (with the average value at that time representing the base level of 100.0). Selling prices from approximately 6 million identified properties (from the full dataset of 16 million) are used.
* The Land Registry’s data is revised each month as additional data is added – please see www.landregistry.gov.uk for more information.