UK House Price Index (HPI) in United Kingdom

The UK House Price Index (HPI) measures the change in the value of residential property in England, Scotland, Wales and Northern Ireland. It is published by HM Land Registry, together with the country's registration and statistics offices, using sales that have actually been registered.

It is built from transactions lodged at the land registry using a model that holds property characteristics (type, size, location) constant in order to isolate the price change. It is expressed as an index and as monthly and year-on-year rates, relative to a base year.

House prices affect construction and its supply chain, household wealth and consumption (the wealth effect) and financial stability through mortgage lending. The Bank of England watches it closely given its links to inflation and credit.

The UK HPI is released with a considerable lag, longer than mortgage-approval-based indices such as those of Nationwide or Halifax, and is revised as registrations are completed. The average can be skewed by the mix of transactions.