How accurate is the Nationwide House Price Index Calculator?

ellie27

Just wondering?

http://www.nationwide.co.uk/about/house-price-index/house-price-calculator

Should that give a good estimate of the current price of a house?

I know it will not take into account any changes/decor etc

rosie383

I just tried it with my house details. It doesn't seem to take into acciunt a fsst-growing market. Said there should be a rise of 2.32% but in reality it would be about 10% over the past year. OTOH, 3 beds have risen a huge amount more so imagine it would be even further off there.

Ok. Just did it and it's about 40k off.

benjus

It takes into account published sale data, so don't expect it to be up to date with current asking prices, especially if the market has changed recently.

You wouldn't use it to value a house for sale, but lenders do use indices like these for mortgage transfers and sometimes for remortgages.

ellie27

Just looking at the house we are buying.

I put in the price the seller paid for it in 2002 when they bought and it came out with a figure much higher than we are paying - I guess it would be a worry if the figure came out much lower then I would worry we are paying way too much for it!

mufi

Am I missing something, or are the areas offered too vague? For example, East Anglia, where I live, covers a huge area and includes Cambridge, where property prices have increased far more than elsewhere in the region. So presumably it downgrades Cambridge prices, and upgrades the rest?

ognum

mufi wrote: »

Am I missing something, or are the areas offered too vague? For example, East Anglia, where I live, covers a huge area and includes Cambridge, where property prices have increased far more than elsewhere in the region. So presumably it downgrades Cambridge prices, and upgrades the rest?

This calculator is rubbish, it suggests that house values over the last 7 years have increase 8% where as conservatively in my area (Cambridge city) they have increased 60%!!!

ellie27

It seems to be very accurate with past sold prices around the Glasgow area.

Hoploz

I've just tried it for some properties in Surrey here and it has underestimated.

Property in Sussex it has overestimated.

Both are in outer south east category, so this I guess is the flaw - the regions are too large.

Yolina

It gives a reasonable ballpark (slightly under given what has sold recently around here) for my London flat which I bought in 1999

lincroft1710

Having used it in a professional capacity, I found it very inaccurate. Average was 10%, worst was 25%. It is far too generalised and some of the areas it lumps together have seen different price fluctuations.

SplanK

You are all missing this notice on their website:

Please note: The Nationwide House Price Calculator is intended to illustrate general movement in prices only....


For an accurate valuation of your property we would always recommend you consult a local estate agent or surveyor

Its a guide tool only. It is not 100% accurate, in fact, it can never be 100% accurate due to the changes in the property.