http://www.reuters.com/article/id0915866900080909
Halifax suspends house price index
Wed Sep 23, 2008 12:23am BST
LONDON (Reuters) – Halifax has today announced that in light of the current turmoil in the housing market, it is suspending its house price index until further notice. A spokesman commented “during the recent months, it has come to light that index is being distorted by large numbers of properties that are selling for less than they were in the very recent past. In light of this the HBOS house price index, is not reflecting the many houses that are now not selling, so leading to skew in our index.”
Howard Archer, Chief UK and European Economist at Global Insight commented “questions were being raised by the emerging discrepancy between the HBOS index and the other indices, and it is good that HBOS has looked into the reasons”
Leight Skene at Lombard street research said “It is of interest that the Halifax has noted that it index is not picking up houses that aren’t selling. Hopefully they will soon find some way to incorporate this, perhaps some form of adjustment, and the index will soon be back”.
Elsewhere, Gordon Brown in his speech later today is expected to announce proposals aimed at reviving the UK’s sagging economy. These are seen including house prices in the CPI, and so giving the MPC more room to manoeuvre on interest rates. A ban on selling shares for less than you purchased them for and a free weekend at Butlin’s for every family with children under the age of 14.
Disclaimer: The above is made up and bear no resemble to any reality, either this one or another one. This does not guarantee the accuracy of the information, and does not mean that his might not pass in the fullness of time.
Halifax suspends house price index
Wed Sep 23, 2008 12:23am BST
LONDON (Reuters) – Halifax has today announced that in light of the current turmoil in the housing market, it is suspending its house price index until further notice. A spokesman commented “during the recent months, it has come to light that index is being distorted by large numbers of properties that are selling for less than they were in the very recent past. In light of this the HBOS house price index, is not reflecting the many houses that are now not selling, so leading to skew in our index.”
Howard Archer, Chief UK and European Economist at Global Insight commented “questions were being raised by the emerging discrepancy between the HBOS index and the other indices, and it is good that HBOS has looked into the reasons”
Leight Skene at Lombard street research said “It is of interest that the Halifax has noted that it index is not picking up houses that aren’t selling. Hopefully they will soon find some way to incorporate this, perhaps some form of adjustment, and the index will soon be back”.
Elsewhere, Gordon Brown in his speech later today is expected to announce proposals aimed at reviving the UK’s sagging economy. These are seen including house prices in the CPI, and so giving the MPC more room to manoeuvre on interest rates. A ban on selling shares for less than you purchased them for and a free weekend at Butlin’s for every family with children under the age of 14.
Disclaimer: The above is made up and bear no resemble to any reality, either this one or another one. This does not guarantee the accuracy of the information, and does not mean that his might not pass in the fullness of time.
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