What do the house price indices mean?

The mainstream press and the home-owning public are hunting for signs of life in the housing market. Every property index is monitored. But what do these indices measure and how reliable are they?

The mainstream press and the home-owning public are hunting for signs of life in the housing market. Every property index is monitored. But what do these indices actually measure and how reliable are they?

Rightmove's index. This is based on sellers' initial asking prices. As such, it captures the very latest data. But the trouble is it is really only a measure of how optimistic the latest sellers are feeling- subsequent asking price reductions are not recorded - rather than a guide to transaction prices.

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Ruth Jackson-Kirby

Ruth Jackson-Kirby is a freelance personal finance journalist with 17 years’ experience, writing about everything from savings accounts and credit cards to pensions, property and pet insurance.

Ruth started her career at MoneyWeek after graduating with an MA from the University of St Andrews, and she continues to contribute regular articles to our personal finance section. After leaving MoneyWeek she went on to become deputy editor of Moneywise before becoming a freelance journalist.

Ruth writes regularly for national publications including The Sunday Times, The Times, The Mail on Sunday and Good Housekeeping, among many other titles both online and offline.