A cross-sectional analysis of residential property prices: the effects of income, commuting, schooling, the housing stock and spatial interaction in the english regions

B. Fingleton

Research output: Contribution to journalArticlepeer-review

20 Citations (Scopus)


This article examines the distribution of residential property prices in 2001 across local areas in England using spatial econometric methods, showing that spatial variations in local income, income within commuting distance, the stock of residential properties and the quality of local schooling have significant effects. The residual spatial variation due to unknown factors is modelled by a proxy variable, but this does not rule out a significant spatial lag. The article argues that this represents endogenous interaction of property price levels between neighbouring areas, which is interpreted as the outcome of local market knowledge and preference, which produces greater price similarity between an area and its neighbours than one would anticipate from the levels of the exogenous price determinants.
Original languageEnglish
Pages (from-to)339-361
Number of pages22
JournalPapers in Regional Science
Issue number3
Publication statusPublished - 17 Nov 2006


  • housing supply
  • markets
  • cross-sectional models
  • spatial econometric models

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