Template-Type: ReDIF-Paper 1.0
Author-Name: Alberto Montagnoli
Author-Name-First: Alberto
Author-Name-Last: Montagnoli
Author-Email: alberto.montagnoli@stirl.ac.uk
Author-Workplace-Name: Department of Economics, University of Stirling
Author-Name: Jun Nagaysu
Author-Name-First: Jun
Author-Name-Last: Nagaysu
Author-Email: nagayasu@sk.tsukuba.ac.jp
Author-Workplace-Name: Graduate School of Systems & Information engineering, University of Tsukuba, Japan
Title: An investigation of housing affordability in the UK regions
Abstract: The housing market has been extensively investigated in the literature; however, there is a lack of understanding of the fundamentals affecting housing affordability across UK regions as measured by the price to income ratio. The aim of this paper is twofold; firstly we calculate the affordability ratio based on individuals' incomes. Second we set off to ask which socio-economic factors could affect this ratio. The analysis finds a strong influence coming from the mortgage rate, the residents' age and academic qualifications. We also report a positive and significant effect from foreign capital coming to the UK.
Finally, we record a non-negligible degree of heterogeneity across the twelve regions.

Length: 31 pages
Creation-Date: 2013-08
Revision-Date: 
Publication-Status: Published
File-URL: http://www.strath.ac.uk/media/1newwebsite/departmentsubject/economics/research/researchdiscussionpapers/2013/13-16FINAL.pdf
File-Format: Application/pdf
Number: 1316
Classification-JEL: E31, E52
Keywords: House market, affordability index, heterogeneity, panel data
Handle: RePEc:str:wpaper:1316