An improved national house price index using Land Registry data

The methods of constructing house price indices in the UK have lagged behind those employed in some Western countries. The deficiencies in these methods weaken the decision-making ability of investors, stakeholders and policy makers. This paper reviews existing methodologies and introduces the repeat sales regression (RSR) method in a UK context, utilising Land Registry data. Particularly, we build upon the argument presented by Leishman and Watkins (2002) that some deficiencies of the existing indices can in part be remedied through the application of the repeat sales regression method using Land Registry Data. We initially summarise evidence and conclusions drawn from previous studies in order to demonstrate through application that repeat sales regression analysis on the recently released Land Registry `price paid' dataset, is the preferable methodology for the measurement of house price movements in England and Wales; addressing some of the shortcomings associated with the current methodologies. We present empirical research conducted by the author, illustrating the first application of repeat sales regression for England and Wales using Land Registry data.