UK House Prices FAQ

Freqently Asked Questions

Everything you need to know about property prices!

MIHomes.co.uk is designed to provide detailed analytics on UK property prices based on actual sales data provided by the Land Registry.

1.What are the biggest factors to determine the value of a house?

There are several factors that can affect the value of a house. Some of the most important ones include:

  • Location, Location, Location!: The location of a house is the biggest single factor in determining its value. A house in a desirable neighborhood will typically be worth more than a similar house in a less desirable area.
  • Size: The size of a house, in terms of both the overall square footage and the number of bedrooms and bathrooms, can also affect its value. Generally, larger houses are worth more than smaller ones.
  • Condition: The condition of a house is another important factor in determining its value. A well-maintained house will typically be worth more than a house that is in need of repair or renovation.
  • Amenities: The presence of certain amenities, such as a garage, useful outbuilding or a large garden, can also affect the value of a house.
  • Market conditions: The overall state of the real estate market can also impact the value of a house. During a strong seller's market, for example, houses may be worth more than they would during a buyer's market.

2.What determines the strength of the housing market?

There are several factors that can affect the strength of the housing market including:

  • Economic conditions: A strong economy, with low unemployment and high levels of consumer confidence, can lead to a strong housing market. In a strong economy, people are more likely to have the financial means to buy a house, and they may be more willing to take on the financial commitment of a mortgage.
  • Interest rates: Interest rates play a major role in the housing market. When interest rates are low, it is less expensive for people to borrow money to buy a house, which can lead to increased demand for homes and a stronger housing market.
  • Inventory: The supply of available homes on the market can also affect the strength of the housing market. If there is a high level of inventory, with many homes for sale, buyers may have more options to choose from and may be able to negotiate for lower prices. This can lead to a weaker housing market.
  • Demographics: Demographic trends, such as population growth and changes in household composition, can also affect the housing market. For example, an increase in the number of young families may lead to increased demand for larger homes, while an aging population may lead to increased demand for smaller homes or retirement communities.
  • Government policies: Government policies and programs, such as first-time homebuyer incentives or changes to mortgage lending regulations, can also affect the housing market. These policies can either encourage or discourage people from buying homes, which can impact the overall strength of the market.

3.Is mean or median the best measure of average house prices for an area?

It depends on the context and what you are trying to learn from the data. Both the mean and median are measures of central tendency, which provide information about the "average" value in a set of data.

  • The mean is the sum of all the values in a set of data, divided by the total number of values. It is a useful measure when the data is relatively symmetrical and does not have any extremely large or small values. For an area which contains similar housing e.g. terraced housing, or flats, the mean would give a good "average" valuation.
  • The median is the middle value in a set of data when the values are ordered from smallest to largest. It is a useful measure when the data is skewed (i.e., not symmetrical) or has outliers (i.e., extremely large or small values that are not representative of the majority of the data). For an area which contains many different types of houses e.g. Large detached housing alongside terraced houses and flats, the median is a much better measure of "average" house prices, as it would be be skewed by the extremes.
In general, if the data is skewed or has outliers, the median is a better measure of central tendency than the mean. This is because the median is not affected by extremely large or small values, whereas the mean is. Therefore, if you are trying to find the average house price for an area and the data is skewed or has outliers, the median is almost always the better measure to use.