Yorkshire online estate agent esaleuk.com is urging homeowners not to panic when a new house price index is introduced this summer which will better reflect the true value of property in the UK.
At the moment, there are a number of different sources for information, often providing different figures depending on the metrics they use.
However, from June, the Government has decided that the ONS will combine its data with the Land Registry and with the Council of Mortgage Lenders to give a better and more accurate picture of just what “average” homes are worth.
“Indeed, they’ve already begun to experiment and, as you may expect, the figures they’re coming up with are different again to those we’ve been reading about so far,” said esaleuk.com managing director David Rook. “Actually, the values are substantially lower.
“Using December 2011 as an example, the new methods would give an average house a price £37,000 lower than the one published at the time – but it’s only because the methods they will use to calculate the ‘average’ will reduce the impact that exceptionally high-value homes have on the figures.
“Nevertheless, there is an understandable concern that, when the index is published for the first time in June, there is bound to be a perceived drop in property prices.
“The key word to emphasise though is ‘perceived’. In real terms, the value of property across the country will not have fallen off the edge of a cliff at all. If your home was worth around £200k before, then there’s every likelihood it will remain at around that price in July. The lower average house price is not the result of a sharp decline in values, just a new method of calculation.”
So, if you’re round the table at a dinner party or in the pub with friends this summer and the conversation switches from Euro 2016 to the price of property, esaleuk.com would urge everyone to remember there’s probably no need to join in any panic.
“If you would like an idea of what your home might be worth, we offer a free, no-obligation service on our website,” added Mr Rook. “Just click on the link and we’ll be happy to get back to you and hope to put your mind at rest.”