An Investigation of Housing Affordability in the UK Regions

Alberto Montagnoli, Jun Nagayasu

Research output: Working paperDiscussion paper

Abstract

The housing market has been extensively investigated in the literature; however there is a lack of understanding of the fundamentals affecting housing affordability across UK regions as measured by the price to income ratio. The aim of this paper is twofold; firstly we calculate the affordability ratio based on individuals’ incomes. Second we set off to ask which socioeconomic factors could affect this ratio. The analysis finds a strong influence coming from the mortgage rate, the residents’ age and academic qualifications. We also report a positive and significant effect from foreign capital coming to the UK. Finally, we record a non-negligible degree of heterogeneity across the twelve regions.
LanguageEnglish
Place of PublicationGlasgow
PublisherUniversity of Strathclyde
Pages1-30
Number of pages31
Volume13
Publication statusPublished - 2013

Fingerprint

Housing affordability
Income
Mortgage rates
Foreign capital
Qualification
Affordability
Socioeconomic factors
Housing market
Residents

Keywords

  • house market
  • affordability index
  • heterogeneity
  • panel data

Cite this

Montagnoli, A., & Nagayasu, J. (2013). An Investigation of Housing Affordability in the UK Regions. (16 ed.) (pp. 1-30). Glasgow: University of Strathclyde.
Montagnoli, Alberto ; Nagayasu, Jun . / An Investigation of Housing Affordability in the UK Regions. 16. ed. Glasgow : University of Strathclyde, 2013. pp. 1-30
@techreport{cbe315adbabf41f7999786c6717ef496,
title = "An Investigation of Housing Affordability in the UK Regions",
abstract = "The housing market has been extensively investigated in the literature; however there is a lack of understanding of the fundamentals affecting housing affordability across UK regions as measured by the price to income ratio. The aim of this paper is twofold; firstly we calculate the affordability ratio based on individuals’ incomes. Second we set off to ask which socioeconomic factors could affect this ratio. The analysis finds a strong influence coming from the mortgage rate, the residents’ age and academic qualifications. We also report a positive and significant effect from foreign capital coming to the UK. Finally, we record a non-negligible degree of heterogeneity across the twelve regions.",
keywords = "house market, affordability index, heterogeneity, panel data",
author = "Alberto Montagnoli and Jun Nagayasu",
note = "Published as a paper within the Discussion Papers in Economics, No. 13-16 (2013)",
year = "2013",
language = "English",
volume = "13",
pages = "1--30",
publisher = "University of Strathclyde",
edition = "16",
type = "WorkingPaper",
institution = "University of Strathclyde",

}

Montagnoli, A & Nagayasu, J 2013 'An Investigation of Housing Affordability in the UK Regions' 16 edn, University of Strathclyde, Glasgow, pp. 1-30.

An Investigation of Housing Affordability in the UK Regions. / Montagnoli, Alberto ; Nagayasu, Jun .

16. ed. Glasgow : University of Strathclyde, 2013. p. 1-30.

Research output: Working paperDiscussion paper

TY - UNPB

T1 - An Investigation of Housing Affordability in the UK Regions

AU - Montagnoli, Alberto

AU - Nagayasu, Jun

N1 - Published as a paper within the Discussion Papers in Economics, No. 13-16 (2013)

PY - 2013

Y1 - 2013

N2 - The housing market has been extensively investigated in the literature; however there is a lack of understanding of the fundamentals affecting housing affordability across UK regions as measured by the price to income ratio. The aim of this paper is twofold; firstly we calculate the affordability ratio based on individuals’ incomes. Second we set off to ask which socioeconomic factors could affect this ratio. The analysis finds a strong influence coming from the mortgage rate, the residents’ age and academic qualifications. We also report a positive and significant effect from foreign capital coming to the UK. Finally, we record a non-negligible degree of heterogeneity across the twelve regions.

AB - The housing market has been extensively investigated in the literature; however there is a lack of understanding of the fundamentals affecting housing affordability across UK regions as measured by the price to income ratio. The aim of this paper is twofold; firstly we calculate the affordability ratio based on individuals’ incomes. Second we set off to ask which socioeconomic factors could affect this ratio. The analysis finds a strong influence coming from the mortgage rate, the residents’ age and academic qualifications. We also report a positive and significant effect from foreign capital coming to the UK. Finally, we record a non-negligible degree of heterogeneity across the twelve regions.

KW - house market

KW - affordability index

KW - heterogeneity

KW - panel data

M3 - Discussion paper

VL - 13

SP - 1

EP - 30

BT - An Investigation of Housing Affordability in the UK Regions

PB - University of Strathclyde

CY - Glasgow

ER -

Montagnoli A, Nagayasu J. An Investigation of Housing Affordability in the UK Regions. 16 ed. Glasgow: University of Strathclyde. 2013, p. 1-30.