Climbing the property ladder: An analysis of market integration in London property prices Academic Article

abstract

  • We investigate the long-run convergence of house prices across the London boroughs based on a pairwise unit root probabilistic testing procedure. In sharp contrast to the earlier literature, we employ a dataset that distinguishes between four different types of property in each borough. Using a quarterly dataset that spans from 1995 to 2014, we find evidence in favour of long-run convergence thereby suggesting that the great majority of London borough house prices are driven by a single common stochastic trend. In a further contribution, we offer new insights through analysing the determinants of long-run convergence, by considering the role of geographic proximity, type of accommodation, and amenities (quality of life).

publication date

  • 2017/1/1

keywords

  • accommodation
  • amenity
  • analysis
  • determinants
  • evidence
  • literature
  • market
  • price
  • quality of life
  • testing procedure
  • trend

International Standard Serial Number (ISSN)

  • 0042-0980

start page

  • 1

end page

  • 22