“Clear relationship” between employment patterns and house price performance

Published on

job-interview

Homeowners in the local authorities that have seen the largest rises in employment have also seen the average value of properties rise by over £100,000 over the past 10 years, according to new research by Halifax.

The average house price in the 20 local areas recording the largest increases in employment in the decade to June 2014 rose by 45% (or £103,785). This was more than double the national average increase in house prices over the period (21% or £35,456).

At the same time, employment in these areas rose by an average of 26%, well ahead of the average national increase of 4%.

Martin Ellis, housing economist at Halifax, said: “There is a clear relationship between employment patterns and house price performance over the past decade. Top performing areas for employment have generally seen well above average house price gains while the worst performing employment areas have typically recorded much more modest property house price rises.

“This demonstrates the importance of economic conditions to the health of the local housing market.”

Over the past decade, the top 10 performing house price locations have been evenly split between northern Scotland and central London. Seven of these top 10 areas also feature among the top 25% of local areas in terms of employment growth over the period.

Aberdeen and Aberdeenshire both feature in the top 10, with prices in these areas boosted by the strong performance of the oil sector during the past ten years.

Tower Hamlets, Hackney and Lambeth also feature in the top 10, with prices in these areas boosted by the wider house price growth in London. Southwark and Lewisham have also recorded significant price gains.

The top 10 performing house price locations have significantly outperformed the rest of the country as a whole, with an average house price gain of 89%; more than four times the national average of 21%.

Employment in these 10 areas of house price growth has increased by an average of 15%; well above the national average of 4%.

COMMENT ON MORTGAGE SOUP

We want to hear from you!
Leave a comment and get the conversation started.
You need to register to post, so please login or sign up below.

Latest articles

FCA to join Bristol summit as later life lending sector weighs market study

The Financial Conduct Authority will join advisers, lenders and industry figures in Bristol next...

Targeted deposit scheme could help one million first-time buyers onto housing ladder

A new government-backed deposit scheme could provide a route onto the housing ladder for...

Hodge raises holiday let lending limits with 80% LTV move

Hodge Bank has widened its holiday let criteria, increasing maximum loan-to-value to 80% and...

Family BS expands fixed rate range across core lending lines

Family Building Society has launched a refreshed range of fixed rate products spanning owner-occupier...

HLPartnership hires Toby Miles from Legal & General for recruitment role

HLPartnership has appointed Toby Miles as recruitment manager, joining the mortgage and protection network...

Latest publication

Other news

FCA to join Bristol summit as later life lending sector weighs market study

The Financial Conduct Authority will join advisers, lenders and industry figures in Bristol next...

Targeted deposit scheme could help one million first-time buyers onto housing ladder

A new government-backed deposit scheme could provide a route onto the housing ladder for...

Hodge raises holiday let lending limits with 80% LTV move

Hodge Bank has widened its holiday let criteria, increasing maximum loan-to-value to 80% and...