So you’ve heard about house price index (HPI) valuations and are wondering how they differ to other types of valuations or if you even need one?
Well, in simplest terms a house price index (HPI) measures the price changes of residential housing as a percentage change from a specific start date (which has HPI of 100).
The UK House Price Index uses house sales data from three separate sources: The HM Land Registry, Registers of Scotland and The Land and Property Services of Northern Ireland. It is then calculated by the Office for National Statistics.
The index works by applying a statistical method called a hedonic regression model, to the various sources of data on property price and then produces estimates on the predicted change in house prices for each period. The index is published monthly in the England, Scotland and Wales, with Northern Ireland figures updated quarterly.
You should be aware, that due to the low number of sales transactions in some local authorities, estimates can be volatile. Therefore, in these locations it is recommended to always analyse in the context of their longer-term trends instead of focusing purely on monthly movements.
Historic data within the HPI tool is derived, and data is available from 1995 for England and Wales, 2004 for Scotland and 2005 for Northern Ireland. There is a longer back-series however, which has been derived using a historic path of the Office for National Statistics HPI that allows series to be constructed all the way back to 1968.
Do I need a House Price Index (HPI) Valuation of my House?
You are probably wondering, do I need a HPI valuation of my property? The answer depends on the potential for accuracy. If your property is in an area where many properties have recently been sold, then you are going to get a far more accurate valuation than one where none have been sold, you may not even obtain a valuation in these areas at all.
A great benefit of HPI valuations is that they are time efficient, using sites like Zoopla, you can often get a valuation in seconds. However, their accuracy is always limited, and with apps like Zeus you can easily improve upon it, at least 16% to be precise .
There’s no question that HPI house valuations can be a useful asset, but in today’s world with advancing Proptech, the best methods have moved on from basic HPI valuations. Now you can connect with hundreds of local agents who will give you specific valuations of your property within a few hours or less. So, why would you rely upon old outdated methods that aren’t specific to your property?
How is a Zeus valuation better than a HPI valuation of my house?
Well, for starters as stated above Zeus provides several valuations from numerous local agents who have actually viewed your property virtually. So already, the information is far more tailored and specific to your individual property, and the valuations you receive are from real-life human beings who work as estate agents, and who are trained in providing valuations. You will also receive an average valuation which is calculated from all the valuations you receive.
The way Zeus has been designed, is to prompt you to provide accurate information with ease. Therefore, it’s not time consuming or labouring, yet you still get results just as accurate as if you went in to an estate agency physically and endured the long arduous process that entails.
Nick Christoforou, our founder champions the accuracy of the owner-submitted information, rightly saying it is actually good enough to replace a physical valuation, saving owners and agents time on irrelevant interactions;
“No need to visit the property. Our data shows our app’s average valuation is consistently within just 5% of the eventual deal price, for both sales and lettings.”
Agents love the simplicity of Zeus and are keen to value your property. Upload today and receive their valuations.
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Founder: Nick Christoforou