Where the going’s good: Lloyds Bank report highlights link between economic prosperity and house prices in 20 areas since 2007.
What’s the latest?
House prices have rocketed by nearly £100,000 in locations with the biggest improvements in unemployment over the last 10 years, according to the latest research from Lloyds Bank.
The 20 areas with the sharpest falls in unemployment have seen house price gains of almost double the national average since 2007 (rising 48% against the compared to 25%).
The top 10 areas with the biggest decline in unemployment saw an even more dramatic increase, rising 53% on average.
In contrast, the 10 areas with the highest levels of unemployment saw house prices grow by just 10% in the same period.
Why is this happening?
Andrew Mason, Lloyds Bank Mortgage Director, explained: “A strengthening job market helps to boost confidence, puts more cash into customers’ pockets and also makes it easier to secure a mortgage. These developments all help to increase the demand for homes, which leads to increasing property prices.”
.jpeg)
Above: five-bedroom terraced house for sale in Waltham Forest
Who does it affect?
Of the 20 areas with the biggest falls in unemployment, eight were in London.
The borough of Waltham Forest saw the biggest surge in house prices, with an eyewatering increase of 92% over the past decade.
It was followed by the boroughs of Newham, Southwark and Haringey where prices rose 81%, 75% and 74% respectively.
While this could be great news if you already own a home in these areas, it means ever bigger deposits and mortgages for would-be first-time buyers.
And while being employed is a fundamental starting block of homeownership, with a third of homes in the UK ‘earning’ more than their owners, the gap between wages and house prices is becoming a headache for potential buyers.
Sounds interesting. What’s the background?
The research uncovered a few exceptions. Liverpool, Halton and Knowsley for example all saw significant falls in unemployment, but only recorded modest house price gains.
The areas with the worst performance in unemployment terms in the last 10 years – either recording a rise or very small fall – have remained on par with national average house price, at 26%.
Top 3 takeaways
-
In the last 10 years, house prices have climbed by 48% in the 20 areas with the biggest decline in unemployment, compared to an average of 25%
-
Waltham Forest has seen the most dramatic change with prices leaping by 92%
-
The 10 areas with the highest levels of unemployment saw house prices grow by just 10% in the same period
You may also be interested in...
Share this story