An investigation of housing affordability in the UK regions

Alberto Montagnoli () and Jun Nagaysu ()
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Jun Nagaysu: Graduate School of Systems & Information engineering, University of Tsukuba, Japan
Authors registered in the RePEc Author Service: Jun Nagayasu

No 1316, Working Papers from University of Strathclyde Business School, Department of Economics

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 socio-economic 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 (search for similar items in EconPapers)
JEL-codes: E31 E52 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2013-08
New Economics Papers: this item is included in nep-eur, nep-mac and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Working Paper: An Investigation of Housing Affordability in the UK Regions (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:str:wpaper:1316

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