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Economy in Brief

UK's "Rightmove" House Price Index in Second Year-to-Year Decline
by Louise Curley August 18, 2008

The average asking price for a house coming onto the market in the U.K. declined 4.8% in August from a year ago after a 2.0% year-to-year decline in July. These were the first two declines in the series which was first begun in 2002.

Rightmove's house price index differs from the usual indexes of house prices that measure the price of an average house as in the Nationwide Buildings Societies' survey or the average of house prices as in the Halifax Bank of Scotland's survey. Rightmove compiles the asking prices of properties coming to market through Rightmove Company's 11.500 estate agency branches. The Rightmove index is based on the price a seller initially asks for his property, not what he eventually gets for it.

The year-to-year changes in the three indexes are shown in the accompanying chart. The year-to-year declines in actual prices of houses have occurred before, and have been deeper than, the year-to-year changes in the Rightmove index. The recent year-to-year declines in the Rightmove index suggest that the actual declines in house prices have at last begun to affect sellers' appraisals of their properties.

UK HOUSE PRICES INDEXES (NSA)  Aug 08 Jul  08  Aug   07  Y/Y % chg  2007 2006 2005
Rightmove (Jan 2002=100) 187.0 191.4 196.5 -4.83 191.2 172.0 159.4
Jul 08 Jun  08  Jul  07  Y/Y % chg  2007 2006 2005
Halifax Bank of Scotland (1983=100) 577.5 588.3 649.2 -11.04 634.5 580.3 535.6
Nationwide Building Societies
(Q1 1993=100) 
337.8 343.9 367.6 -8.11 361.8 331.4 311.4
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