London Central Portfolio launches LCPAca Residential Index
London Central Portfolio (LCP), in conjunction with independent analysts Acadata, has launched the LCPAca Residential Index, which designed to provide a comprehensive dataset tracking residential property prices and volumes within England & Wales, Greater London and Prime Central London.
The index is based on the actual prices at which every property in England & Wales is transacted, including prices of properties bought with cash and all new builds, using factual Land Registry data, as opposed to mortgage-based prices, asking prices or prices based on samples. It adopts a forecasting model, developed over 20 years, enabling reporting to be two months more up to date than provided by the Land Registry itself.
The index report, published monthly, will look at: prices and volume changes each month for Prime Central London, Greater London and England and Wales; price changes by deciles, providing a true indication of how the premium/luxury sector is performing vs the rest of the market, ‘the mainstream sector’; and actual prices and completions in the London and UK wide new build markets.
Naomi Heaton, CEO of LCP, says: “The LCPAca Residential Index has been established to address a number of conspicuous issues with existing residential indices. Samples offered by high-end estate agents tend to be small and non-representative. Nationwide’s HPI represents just 12 per cent of the market, excludes cash purchases and is based on mortgage approvals not actual sales. Rightmove use asking prices data only, whilst RICS Residential Market Survey is largely qualitative. Land Registry’s own published full report is based on a restricted sample, excludes new builds and has a longer time lag.”
“Looking to overcome these problems and provide a single reliable residential index, our new report, based on every sale transacted through Land Registry, will provide a much more accurate and in-depth analysis on how the market as a whole, including the controversial luxury and new build sectors, have really fared in Prime Central London, Greater London and England and Wales.”