are land registry prices off?

Beige

It got so bad that recently when my EA sent me through 3 properties that I calculated were 15-25% over their true price.

I've been doing this for a load of properties in my area. Taking comparable properties, adjusting for changes in property values from the LR index and then comparing asking prices.

I also downloaded all the land registry data and attempted to calculate the index for the area I am buying in - it shows +2.5% over Land Registry london for the last 2 years,

We're currently buying and paying 15% over my 'true value' (20% over if you use Land Registry london index without my +2.5%). 7% of that is us offering over the asking price.

That sounds crazy, but the problem is that many other properties on the market (and ones we have attempted to buy) have apparently sold for even more over 'true value'. The other option is to sit-out, which may be better, but who really knows what the future holds (that and because of my family situation now is the right time for us to buy).


This one is one of the worst offenders. Purchased 21/5/2010 for £220 in the same condition, now on for £400. I make that +45% over my (more forgiving) 'true value'.

The other interesting thing I noticed is that when I grouped a small (27) selection of recently advertised properties into STC and available (just using rightmove) the STC ones averages 11% over true value, the available ones averaged 23% over.

DRP

Beige wrote: »

I've been doing this for a load of properties in my area. Taking comparable properties, adjusting for changes in property values from the LR index and then comparing asking prices.

I also downloaded all the land registry data and attempted to calculate the index for the area I am buying in - it shows +2.5% over Land Registry london for the last 2 years,

We're currently buying and paying 15% over my 'true value' (20% over if you use Land Registry london index without my +2.5%). 7% of that is us offering over the asking price.

That sounds crazy, but the problem is that many other properties on the market (and ones we have attempted to buy) have apparently sold for even more over 'true value'. The other option is to sit-out, which may be better, but who really knows what the future holds (that and because of my family situation now is the right time for us to buy).


This one is one of the worst offenders. Purchased 21/5/2010 for £220 in the same condition, now on for £400. I make that +45% over my (more forgiving) 'true value'.

The other interesting thing I noticed is that when I grouped a small (27) selection of recently advertised properties into STC and available (just using rightmove) the STC ones averages 11% over true value, the available ones averaged 23% over.

The problem is, 'true value' is a load of cobblers

If there are more decent buyers around than decent houses, then you're gonna have to pay above you 'true value' ...

I also downloaded all the land registry data and attempted to calculate the index for the area I am buying in - it shows +2.5% over Land Registry london for the last 2 years

your +2.5% value is presumably some kind of average... so mostly irrelevant

Beige

The problem is, 'true value' is a load of cobblers

your +2.5% value is presumably some kind of average... so mostly irrelevant

If you believe these then we would disagree about a lot more than just house prices and it's probably not worth getting in to here. :cheesy: