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Data Change: U.K. - Halifax HPI - Method
Friday, 22 Nov 2019 03:23 ET
By Petr Svitil
Summary
November 2019 -- For the Halifax House Price Index, concurrent with dissemination of results for August 2019, the source has updated its methodology, and advanced the index base year from 1983 to 1992 (three monthly series 1983 to 2019, replaced from 2018).
Detail

The source wrote, in part (emphasis ours) (citation):

The sole source of data for HHPI (2019) remains Lloyd's Banking Group (LBG). [...]

With the core aim of HHPI (2019) to provide a robust measure of changes in residential property prices, as in the case of HHPI (1983), several types of transaction are excluded from index generation. These include:

    • Re-mortgages
    • Business use, capital raising, or building mortgages
    • Discounted mortgages relative to market value (as determined by observed data that shows the property valuation < 75% of purchase price e.g. the “Right-to-Buy” scheme).

An exception to the discounted mortgage rule is shared ownership mortgages which are, for the first time, included in the new version of the HHPI. We also now include buy-to-let properties and those bought directly from less-conventional vendors e.g. builders.

The new methodology also excludes variables such as central heating statistics and garage spaces.

In response, we have:

  1. Archived the predecessors ("HHPI (1983)", 1983=100) by renaming with an "_83" specifier, marking the metadata as "discontinued", and segregating in the catalog.
  2. Created one-for-one replacements ("HHPI (2019)", 1992=100).
  3. Refurbished the catalog.

Properties that have changed:

  • Index base period: from 1983 to 1992
  • Start date: from 1983m1 to 2018m9

The series reside in the historical catalog:

  • United Kingdom » Real Estate » Residential » Prices » Halifax House Price Index » Discontinued » HHPI (1983)
  • United Kingdom » Real Estate » Residential » Prices » Halifax House Price Index » HHPI (2019)

and are:

  • HSIHPH_83AM.IGBR = [DISCONTINUED] Index, (Index 1983=100, SA)
  • HSLHPH_83AM.IGBR = [DISCONTINUED] Standardized average price, (GBP, SA)
  • HS%HPH_83UM.IGBR = [DISCONTINUED] Annual percent change, (% Y/Y 3-mo MA, NSA)
  • HSIHPHAM.IGBR    = Index 1992=100
  • HSLHPHAM.IGBR    = Standardized average price
  • HS%HPHUM.IGBR    = Annual percent change

References

Other
Related ReleaseHalifax Housing Price Index
SourceHalifax Bank of Scotland (HBOS)
FrequencyMonthly
GeographyUnited Kingdom
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