ONS update wipes thousands off property values

April 15, 2016 by Brendan O'Neill

House Prices

Property owners in London may be shocked to find that the value of their home has fallen by £27,000, according to figures released by Office for National Statistics (ONS).

Following a revision of data held by ONS, the organisation has knocked thousands of house values. Initially, it appears that statisticians for the government had overstated the strength of the property market during January, although ONS denies this. According to the government department, it has just updated the house price index.

Data issued by ONS last month prompted news reports that the price of property in London was increasing at a rate of £500 per day. However, it would now appear that this isn’t the case, as the ONS releases its latest house price index.

The latest report reveals that the average price of a UK property fell during January by £1,700, despite the ONS stating in March that the price of an average UK property had soared by nearly £4,000.

In the latest report released by ONS, there is no explanation for the supposed discrepancies, although it does state that property values in London had fallen in comparison with previous record levels. An ONS spokesperson did offer an explanation, stating the index “weights” had been brought up-to-date to make sure that it reflected the types of property bought and the average price.

Many property reports can be confusing to the untrained eye, which is why mortgage advisers undertake CeMAP training to provide in-depth explanations where required, along with mortgage advice.