Analysis of house prices at the local level
Published: December 2018
This project investigates the relationship between income and housing at the local level, using estimates of small area income produced from consumer data . This exploratory analysis looks at the potential for further research into house prices in small geographical areas.
This study is linked with the What can we learn from Small Area Income Estimates? report
Trends in house prices have seen not only rising prices, but substantial growth in inequality in house prices, for example:
- Four-fifths (79%) of the most expensive areas in terms of house prices were situated in London in 1996. This has been consolidated over the last 20 years, with 98% of the most expensive areas now situated in London.
- Haringey is the local authority with the greatest house price inequality in the UK. The most expensive area in Haringey had average house prices of £4.8m, more than 28 times the average house price in the cheapest area within Haringey.
- House price rises have been greatest in areas where house prices were higher to begin with. The average house price rise in the 200 most expensive Lower-Layer Super Output Areas (LSOAs) was 649% between 1996 and 2016, compared with 302% in the 200 cheapest LSOAs.
Using house price data from the Land Registry and estimates of small area income provided by the Consumer Data Research Centre, we analyse trends in house prices at the local level. Descriptive analysis of house price trends reveals substantial regional and sub-regional trends. This is later complimented by regression analysis, which shows the importance of having good estimates of income in small geographic areas.
Download the report