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

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 quar...

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Detalles Bibliográficos
Autores Principales: Holmes, Mark J, Panagiotidis, Theodore, Otero, Jesus
Formato: Artículo (Article)
Lenguaje:Inglés (English)
Publicado: SAGE Publications Ltd 2018
Materias:
Acceso en línea:https://repository.urosario.edu.co/handle/10336/23420
https://doi.org/10.1177/0042098017692303
Descripción
Sumario: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). © Urban Studies Journal Limited 2017.