DCLG HPI (House Price Index) is calculated based on the data collected from the Department of Communities and Local Government. Weighted moving average and price dynamics for a certain period of time are used in calculation of House Price Index.
This calculation method is more reliable in contrast to the method of the simple moving averages affected by such collateral figures as location of real estate, shares of various property etc.
House Price Index helps to monitor the price of sold residential property. Growth of index is a positive signal for consolidation of national currency. However, the market influence of DCLG HPI is low, because the data on which it is based is published earlier and available to the market.
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