Don’t Believe the House Price Index

Limetree Financial Services Limited

Don’t Believe the House Price Index

Our National house price index is now so discredited that it should be abandoned. It ether gives false hope or too much gloom.

Lenders are making seasonal adjustments to monthly data, which means that trying to average house prices over the whole country gives misleading data to people either looking to enter the market or to leave it.

One index states that prices fell by 0.8% last month nationally. Knight Franks say that prices rose 0.9% in June in London, with prices 2% above the low in the market.

So who is right?

Our experience around Cambridge is that clients are struggling to find suitable properties, but when the right property is available they are paying at least the asking price.

Come and talk to us if you would like any advice.

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