Lloyds Banking Group is selling its Halifax House Price Index to financial information firm Markit. Announced today, Markit will acquire the index and associated intellectual property of the product, in a deal that is expected to be completed later this year. Upon taking over the index, the monthly economic indicator of the UK housing market will be administered and calculated by Markit, with Lloyds continuing to be the submitter of data for the survey.
A monthly economic indicator, the Halifax House Price Index measures housing price changes in the UK. The index is followed by forex traders due to the effects of its results on trading of the British pound (GBP). While not typically causing high-impact moves on the pound like UK employment and manufacturing data, the Halifax index can be a leading indicator to inflation moves in the country as well as consumer confidence.
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For Markit the addition of the Halifax House Price Index adds to their list of indexes that they calculate and distribute pricing for. Among their leading indexes are the Purchasing Managers Index (PMI) series which tracts economic activity in over 30 countries as well as the iBoxx fixed income indexes.
Commenting in a joint public statement about the sale, Stephen Noakes, managing director, retail customer products at Lloyds Banking Group, said, “We believe Markit is an ideal partner to take on the administration of the Halifax House Price Index given they are a globally renowned index provider. We already work successfully with Markit on the Lloyds Bank Regional Purchasing Managers’ Index.”
Tim Sargent, managing director and global head of indices at Markit, added “The Halifax House Price Index is a leading barometer of the UK’s property market. We look forward to compiling the index and working with the industry on opportunities to develop financial products based on the housing market.”