Friday, September 12, 2008
FT house price index shows 1.3% fall
Posted by David Smith at 10:20 AM
Category: Thoughts and responses

The FT-Acadametrics house price index showed a drop of 1.3% in August, its biggest yet, and a 2.2% fall on a year earlier, a product both of the latest monthly fall and downward revisions to earlier data. Prices are down by 4% from the peak, which occurred in February. Greater London, the South East and the North are the only areas not showing annual falls (the index does not cover Scotland or Northern Ireland). The discrepancy between the FT index and the lenders' measures remains but is starting to narrow.

This is Acadametrics' description of that discrepancy: "Whilst all house price indices are currently negative, the transaction based residential measures (FTHPI, Land Registry and CLG) that report on the final prices achieved in a sales transaction are giving a materially less negative picture of the market than are the mortgage offer based price indices (Halifax, Nationwide) which reflect each firmís activity within particular market segments and prices that are still under negotiation." Full details of the index here.