Don't completely trust house price indices, says expert

30-Jul-2009

House price indices that claim to show consumers rises and falls in the market should be regarded with some caution, an expert advised this week.

Those buying their first property or existing homeowners may use this information as a barometer to guide them to their next move.

But Selwyn Lim, director at UK housing data website Mouseprice, said recent statistics showing a price drop of 27 per cent in Kensington and Chelsea is not necessarily 100 per cent accurate.

This is because there are not likely to have been many transactions in this area, so the sample size is probably very small.

"Anyone looking at that level of just Kensington and Chelsea - I would caution them," Mr Lim explained.

"I don't think anyone can rightfully come out with any of those conclusions with certainty."

Overall, residential property values in London have fallen by 12.5 per cent in the last year, figures from the Land Registry show.

However, they increased by two per cent in June to reach an average of £301,859.

FirstRungNow.com - how to buy a house, from finding your first flat or first house, first time buyer mortgages, shared ownership, buying with friends, gifted deposit, part buy part rent - all a first time buyer could possibly need.

Nationwide reports house price growth
Property expert assesses mortgage market
Research is 'vital' for first-time buyers

2012: Feb | Jan

2011: Dec | Nov | Oct | Sep | Aug | Jul | Jun | May | Apr | Mar | Feb | Jan

2010: Dec | Nov | Oct | Sep | Aug | Jul | Jun | May | Apr | Mar | Feb | Jan

2009: Dec | Nov | Oct | Sep | Aug | Jul | Jun | May | Apr | Mar | Feb | Jan

2008: Dec | Nov | Oct | Sep | Aug | Jul | Jun | May | Apr | Mar | Feb | Jan

2007: Dec | Nov | Oct | Sep | Aug | Jul | Jun | May | Apr | Mar | Feb | Jan

2006: Dec | Nov | Oct | Sep | Aug | Jul | Jun | May | Apr | Mar | Feb | Jan

2005: Dec | Nov | Oct | Sep | Aug | Jul | Jun | May | Apr | Mar