UK housing market: Halifax house price index 2018-2020

The Halifax house price index, which was set at 100 in 1992 saw increase five months in a row between June 2020 and November 2020, following several months of decline in the beginning of the year. As of November 2020, the index reached 436.7 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. As compared to the national average, the HPI in London has increased between November 2019 and March 2020.

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.