Council areas with the largest rises in employment have also seen the average value of properties rise by over £100,000 over the past 10 years, according to new research by Halifax.
The average house price in the 20 local areas recording the largest increases in employment in the decade to June 2014 rose by 45% (or £103,785). This was more than double the national average increase in house prices over the period (21% or £35,456). At the same time, employment in these areas rose by an average of 26%, well ahead of the average national increase of 4%.
Over the past decade, the top 10 performing house price locations have apparently been evenly split between northern Scotland and central London. Seven of these top 10 areas also feature among the top 25% 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%; more than four times the national average of 21%.
- Employment in these 10 areas of house price growth has increased by an average of 15%; well above the national average of 4%.
“There is a clear relationship between employment patterns and house price performance over the past decade,” commented Martin Ellis, housing economist at Halifax. “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,” he added.
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