House Price Valuation

We’ve been working with the Land Registry Corporate data set for a couple of years and the bulk of that time has been spent cleansing the data and adding geo-positioning co-ordinates for each social home. In May this year we started to look at portfolio valuation but the lack of bedroom data meant that there was a lot of guess work involved and the results didn’t stand up to scrutiny.

We set about collecting bedroom data and along the way we amassed a large amount of information on individual properties which 6 members of the team add to every day. Through this ‘big data’ exercise we started to get interest from Estate Agents and property websites resulting in an exclusivity licence with www.loyaltystreet.com and other opportunities for data cleansing and analysis.

Property Ownership Midmoor Road SW12
Property Ownership Midmoor Road SW12

Housing Associations own a vast amount of property and not all of it is social housing so we removed everything that wasn’t a flat or a house. We spent months cleansing incorrect road names, Postcodes, door numbers and house/flat designations and wrote countless algorithms to tweak the process each time.

1. Firstly we removed Land Registry Titles that was not a home – examples of this are – student/nursing accommodation, electricity sub-stations, shops, business units and even a bowling alley.
2. The initial property valuation exercise looked at any properties sold since 1995 ie. exact matches from ‘House Price Data’.
3. We then used various criteria to segregate the homes as either Flats or Houses and attached bedroom data to each record.
4. CAGR (Compound Annual Growth Rate) was used to calculate the current price of the property.
5. Based on the initial match with Price Paid data and the number of bedrooms we took out the average price for flat and house based on the Lower Layer Super Output Area or Postcode level, whichever was more accurate.
6. Using the average price we attached a value to the remaining properties and then used the House Price Index to cross check our results.

Finally, last Wednesday, we got something we were happy with for L&Q

Total Social Housing homes: £18.12 billion
Freehold : £15.67 billion
Leasehold : £2.45 billion

It’s not exact but it is, we believe, a very good indication of the current market value.

Currently we’re collecting every Social Housing new build including room sizes, client, contractor, construction type etc. Calculating valuation on 4.6 million social homes and enhancing the data of 3000 homes a week.

Every Housing Association, on purchasing a multi-user licence from us, can access all their own Land Registry titles including geo-co-ordinates along side our normal data service.

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