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.
| Original language | English |
|---|---|
| Place of Publication | Glasgow |
| Publisher | University of Strathclyde |
| Pages | 1-30 |
| Number of pages | 31 |
| Volume | 13 |
| Publication status | Published - 2013 |
Keywords
- house market
- affordability index
- heterogeneity
- panel data
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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.