7th July 2005

 

FT House Price Index June 2005

 

House prices rose by 0.3% during June. It does appear that the market may now be stabilising, after 3 consecutive months during which house prices have fallen. The FT House Price Index shows that house prices have barely moved in the year to date and the annual change of 5.0% is the lowest recorded since July 1998 and looks set to continue to fall.

 

The FT House Price Index is calculated by Acadametrics and foreshadows the Land Registry; the only complete measure of domestic property prices in England and Wales. We expect the annual rate of growth produced by the Land Registry for Q2 to be around 6% when published in August

 

We estimate the FT House Price Index, on a seasonally adjusted basis, as follows:

 

 

 

House Price

Index

Monthly Change %

Annual Change %

June 2005

186,180

178.5

0.3

5.0

May 2005

185,598

178.0

-0.7

5.9

April 2005

186,958

179.3

-0.3

7.7

March 2005

187,608

179.9

-0.5

9.1

February 2005

188,470

180.7

0.7

10.7

January 2005

187,168

179.5

0.4

11.0

December 2004

186,337

178.7

0.7

11.5

 

 

The FT House Price Index depicts the underlying trend in House Prices. This continues to show a steady decline in the annual rate of house price inflation since the peak of June 2004. Zero growth in 2005 compares to an average monthly growth of 0.5% in Q4 2004 and 1.2% in Q3 2004.

 

 

 

 

 

FT House Price Index results to Dec 04 are based on Land Registry published data, smoothed, seasonally adjusted but not mix adjusted, revised with updated LR results as available. From Jan 05 to current month, FT House Price Index monthly forecasts of updated LR house price results are shown.

 

Also see www.ft.com/houseprices

www.acadametrics.co.uk