House prices up 100k in employment hotspots

According to a new report by Halifax, over the last 10 years average house prices have risen by 45% in the top 20 areas with largest employment gains.

Related topics:  Property
Warren Lewis
5th December 2014
House Price Up

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) -  more than double national average of 21% (or £35,456). Employment in these areas increased by an average of 26% dwarfing the average national increase of 4%.

Martin Ellis, housing economist at Halifax, explains:

"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.”

Best Performing Employment Areas

Over the last 10 years, the top 10 performing house price locations have been evenly split between northern Scotland and central London. 7 out of the 10 areas are also placed within 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%.

Worst Performing Employment Areas

At the other end of the spectrum, the 20 areas experiencing the worst employment performance over the past 10 years have typically underperformed the national average in terms of house price gains. On average, these areas have recorded an increase in property values of less than £20,000.

The average house price in the 20 local areas recording the smallest increases in employment rate in the decade to June 2014 rose by 13% (or £19,698). This was little more than half the national average increase in house prices over the period (21% or £35,456).

Employment in these areas fell by an average of 11%; well below the national average increase of 4%. The bottom 20 employment areas are concentrated in northern England (8) and the Midlands (6).  

The 10 worst performing house price locations over the past decade are concentrated in northern England, the Midlands and Northern Ireland.

These areas have underperformed the rest of the country as a whole, with an average house price fall of 4%; compared to the national average increase of 21%.

Employment in these 10 areas has fallen by an average of 3%; compared with the national average increase of 4%.

More like this
Latest from Financial Reporter
Latest from Protection Reporter
CLOSE
Subscribe
to our newsletter

Join a community of over 20,000 landlords and property specialists and keep up-to-date with industry news and upcoming events via our newsletter.