Mind the Gap: Implications of Overseas Investment for Regional House Prices Divergence in Britain

TY - JOUR

T1 - Mind the Gap

T2 - Implications of Overseas Investment for Regional House Prices Divergence in Britain

AU - Hamnett, Christopher

AU - Reades, Jon

PY - 2018/3/14

Y1 - 2018/3/14

N2 - The UK has had a long standing regional house price gap with London much less affordable than the rest of the UK. Using price data from 1969-2017 we track price differentials through several cycles of boom and bust, and note the growing divergence of London, particularly central London, from the rest of Britain. In explaining this divergence, we highlight the growing importance of international investment since the global financial crisis. We conclude that, although 'Brexit' may have brought the latest long London boom to a close, there is nothing to suggest that the regional house price gap will close. Given the ongoing importance of global financial inflows to major world cities, this has significant implications for how governments approach affordability and housing policy.

AB - The UK has had a long standing regional house price gap with London much less affordable than the rest of the UK. Using price data from 1969-2017 we track price differentials through several cycles of boom and bust, and note the growing divergence of London, particularly central London, from the rest of Britain. In explaining this divergence, we highlight the growing importance of international investment since the global financial crisis. We conclude that, although 'Brexit' may have brought the latest long London boom to a close, there is nothing to suggest that the regional house price gap will close. Given the ongoing importance of global financial inflows to major world cities, this has significant implications for how governments approach affordability and housing policy.

U2 - 10.1080/02673037.2018.1444151

DO - 10.1080/02673037.2018.1444151

M3 - Article

SN - 0267-3037

JO - HOUSING STUDIES

JF - HOUSING STUDIES

ER -