Glossary:Net acquisitions approach
The net acquisitions approach is an approach to measuring inflation of owner-occupied housing (OOH). Its aim is to measure the changes in prices of dwellings and other goods and services acquired by households in their role as owner-occupiers. When applying this approach directly observable transaction prices which are determined at the time of purchase are used. A system of price indices based on the net acquisitions approach typically covers net purchases of dwellings, constructions of new dwellings, alterations and additions to existing dwellings, transaction costs, repair and maintenance of dwellings and insurance of dwellings. The expenditure weights used in calculations are based on the net principle. It means that purchases by households have a positive weight whereas sales by households have a negative weight. Consequently, transactions made between households cancel out. This is relevant for the weight of transactions in existing dwellings as existing dwellings are often sold between two households.
Further information
- Owner occupied housing price index (ESMS metadata file — prc_hpi_oo_esms) (Metadata file)
- Regulation (EU) 2023/1470 of 17 July 2023 laying down the methodological and technical specifications in accordance with Regulation (EU) 2016/792 of the European Parliament and of the Council as regards the house price index and the owner-occupied housing price index, and amending Commission Regulation (EU) 2020/1148 (legal text)