About the Halifax House Price Index
The Halifax House Price Index (HPI) is one of the UK’s longest-running and most closely followed measures of housing market performance. Compiled from Halifax’s own mortgage lending data, it tracks changes in the value of homes purchased with Halifax mortgages across the UK, providing a monthly snapshot of price trends.
As a mortgage-based index, it reflects the segment of the market financed through lending rather than cash transactions. This means it can be particularly sensitive to shifts in mortgage rates, lending criteria and consumer confidence. Analysts often compare Halifax data with other indices - such as Nationwide or the official UK House Price Index - to identify broader market movements and lender-specific variations.
The index's headline figures - average price, monthly and annual change - are widely used as early indicators of market sentiment. Because Halifax publishes its data at the start of each month, it often provides the first public insight into short-term housing market direction.
The drawdown from peak metric shown here tracks how far average prices have fallen from their most recent high point. This measure helps highlight periods of market correction or consolidation and can be useful in assessing recovery momentum after downturns.
While the Halifax HPI provides timely data, it covers only homes purchased with Halifax mortgages. The official UK HPI, by contrast, incorporates data from all lenders and cash buyers but is released with a longer time lag. For this reason, many analysts view the Halifax series as a leading indicator — useful for identifying turning points before official statistics are available.
Key Takeaways
- The Halifax HPI tracks mortgage-based house prices across the UK.
- Monthly and annual changes provide early signs of market acceleration or slowdown.
- The drawdown from peak highlights the extent of price declines from previous highs.
- Useful as a leading indicator ahead of slower official statistics.
Data Sources
Based on the Halifax House Price Index, produced by Halifax (part of Lloyds Banking Group). Additional context from the UK House Price Index by HM Land Registry and the Office for National Statistics (ONS).