A house price calculator, such as our illustrative House Price Calculator, provides an estimated value for a given property, based upon a known past price, the locality and property type. Whilst input to such calculators includes the postcode, most will employ regional house price movements, assuming that regional changes are precisely reflected at individual property level. Such a calculator is a broad brush tool. Even our illustrative House Price Calculator, using county, unitary district or London borough prices, can provide only indicative results.

Our Acadametrics Residential Asset Calculator (ARAC) improves the indexation process which, whilst it cannot be accurate for a single house, can be very accurate for a portfolio as a whole. As explained in Acadametrics Residential Asset Calculator (ARAC) Methodology, ARAC is based upon our Acadametrics Prices and Transactions (APAT) data but adds:

• average house prices for those months and areas when the number of monthly transactions is less than the three, for any given property type, which LR requires in order to provide a result



• standard deviations for the estimated results, based upon our Testing Indexation results

Whilst ARAC supplements APAT by estimating average prices to fill APAT cells which would, otherwise, be without data, it does so using only APAT data.

The ARAC standard deviations show the range of prices which our calibration finds for the particular property type, within the applicable county/London borough. A property in a fashionable locality or within the catchment area for a good school might e.g. be worth as much as the “estimated value plus 2 standard deviations”, rather than the “current estimated value”, both of which we show.