UK housing market: Halifax house price index 2018-2021

The Halifax house price index, which was set at 100 in 1992 saw increase between February 2021 and October 2021, following three months of fluctuation. As of October 2021, the index reached 465.6 points, the highest on record. The House price index (HPI) is a measurement used to evaluate changes in the standardized house price over a period of time. The Halifax HPI uses a hedonic regression methodology to calculate it’s HPI.

Average House Prices

Average house prices are affected by several factors. Economic growth, unemployment, interest rates and mortgage availability can all affect average prices. A shortage of supply means that the need for housing and, therefore competitive market created will push up house prices, whereas an excess of housing means prices fall to stimulate buyers.

Housing transactions

In the United Kingdom (UK), there are approximately one million residential property transactions annually. On a country level, England makes up the majority of transactions made.