UK housing market: Halifax house price index 2018-2020

The Halifax house price index, which was set at 100 in 1992 saw an increase four months in a row between October 2019 and February 2020, followed by a slight decline in the next three months. As of May 2020, the index reached 410.1 points. 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), on average there were approximately one million residential property transactions annually between 2006 and 2018. On a country level, England makes up the majority of transactions made.