London Property Factor Model

Eight hedonic factors. For each one the page shows return (how the market re-priced the characteristic), composition (how the basket of sold properties shifted), beta (the OLS coefficient path with p-value), and distribution (what has actually been transacted).

Market overview

Rolling 3-month cross-sectional OLS on log(price/sqm), 1995 to present. Full methodology on the About page.

Baseline Market: quality-adjusted price level

Cumulative intercept drift, compositional shifts and control-dummy contributions. Everything not attributed to a tracked factor ends up here.

Cumulative factor returns (excl. baseline)

Pure market repricing: how much each characteristic changed in valuation terms.

Factor Analysis

A factor can have a flat return while its composition (β·ΔX) still moved. That drift is folded into Baseline above.

Decomposition math, in one line

For each factor j, the period-on-period change in the quality-adjusted log-price is split as Δŷ = Δα + Σjt·ΔXj + Xt·Δβj − Δβj·ΔXj]. We report Xt·Δβj as the factor return, βt·ΔXj as the composition (bundled into Baseline), and the cross term as an explicit reconciliation column. Full derivation on the Confluence page Regression Analysis.