property price statistics

Summary

The request sought detailed methodology and specific transaction data regarding the Isle of Man's national property price calculations from the 2020 Economic Affairs housing review. The Cabinet Office disclosed the calculation formula, filtering criteria, and data sources, while providing a specific attachment for 2010 transaction details.

Key Facts

• The national property price is calculated using a weighted average of house and flat prices based on the share of total transactions for each category.
• Property transactions are filtered by acquisition date rather than completion date.
• Calculations rely solely on Land Registry property transactions without leveraging census or local government rates data.
• Transactions are excluded if the consideration price is less than market value, in addition to fixed low and variable high value limits.
• In 2010, the lower price limit for flats was set at £60,000 instead of the standard £70,000.

Data Disclosed

• 2022-01-18
• 2022-02-07
• 2020
• 2010
• £70,000
• £60,000
• 80 percent
• 20 percent
• 2201361

Original Request

In the Economic Affairs housing review 2020: (a) what is the specific formula logic and weightings to calculate the national property price based on the described formula (b) are property transactions filtered by acquisition date or by completion date (c) given the unclear reference to "around" 80 percent and 20 percent, what are the fixed weightings, are they consistent year on year and if not what are the variable weightings for each quarter? (d) are the calculations based solely on land registry property transactions or is additional data leveraged such as property type in the local government rates or in the census (e) what specific property transactions by address and by value were included in the calculation of the national property price in 2010 by houses and by flats (f) what, if any, additional procedures with specific formula logic and weightings if relevant identify and filter out property transactions beyond the described methodology to exclude outliers below a fixed low value at £70000 and above a variable high value -- for example, transactions otherwise within range but manually selected and filtered out due to a significant percentage difference in relation to expected market value?

Data Tables (6)

Full Response Text

Government Office Douglas Isle of Man IM1 3PN Telephone: (+44) 01624 686244 Website: www.gov.im/co

Our ref: 2201361 7 February 2022

Dear ###

We write further to your request which was received on 18 January 2022 and which states:

"In the Economic Affairs housing review 2020: (a) what is the specific formula logic and weightings to calculate the national property price based on the described formula (b) are property transactions filtered by acquisition date or by completion date (c) given the unclear reference to "around" 80 percent and 20 percent, what are the fixed weightings, are they consistent year on year and if not what are the variable weightings for each quarter? (d) are the calculations based solely on land registry property transactions or is additional data leveraged such as property type in the local government rates or in the census (e) what specific property transactions by address and by value were included in the calculation of the national property price in 2010 by houses and by flats (f) what, if any, additional procedures with specific formula logic and weightings if relevant identify and filter out property transactions beyond the described methodology to exclude outliers below a fixed low value at £70000 and above a variable high value -- for example, transactions otherwise within range but manually selected and filtered out due to a significant percentage difference in relation to expected market value?"

Our response to your request is as follows: a) The specific formula for calculating the overall property average price is (( average house price * N_1/N) + ( average flat price * N_2/N)) where N is the total number of transactions for all properties over the relevant periods, and N_1 and N_2 are the numbers of house and flat transactions respectively. b) Acquisition date

c) When calculating the average property weight, houses and flats are weighted according to share of total transactions during the period for that category of property d) Calculations are based solely on land registry property transactions e) Please see attached file. Note: in 2010 the lower limit for Flats was taken as £60,000 rather than £70,000 f) In addition to the fixed low value of £70,000 for houses and flats and the varying upper limit, properties are filtered out should the consideration price be less market value.

Please quote the reference number 2201361 in any future communications.

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