Average house prices in the 20 top performing employment areas have risen by 45 per cent over the past decade – more than double the national average.
Homeowners in the local authorities that have seen the largest rises in employment have also seen the average value of properties rise by over £100,000 over the past 10 years.
The average house price in the 20 local areas recording the largest increases in employment in the decade to June 2014 rose by 45 per cent (or £103,785). This was more than double the national average increase in house prices over the period (21 per cent or £35,456).
At the same time, employment in these areas rose by an average of 26 per cent – well ahead of the average national increase of 4 per cent.
Martin Ellis, housing economist at Halifax, comments: “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.”
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Over the past decade, the top 10 performing house price locations have been evenly split between northern Scotland and central London. Seven of these also feature among the top 25 per cent 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 per cent; more than four times the national average of 21 per cent.
- Employment in these 10 areas of house price growth has increased by an average of 15 per cent; well above the national average of 4 per cent.
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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 per cent (or £19,698). This was little more than half the national average increase in house prices over the period (21 per cent or £35,456).
- Employment in these areas fell by an average of 11 per cent; well below the national average increase of 4 per cent. 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 per cent; compared to the national average increase of 21 per cent.
- Employment in these 10 areas has fallen by an average of 3 per cent; compared with the national average increase of 4 per cent.
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