The study investigates the interrelationships between house prices and share prices at the national and regional levels in the UK. It also investigates whether London house prices spill over to other regions of the UK. In the long-run, share prices and house prices share a negative relationship, but in the short-run, they are positively related. It is found that London prices are influencing prices in other regions, but there is also evidence of other UK regions influencing London property prices. In addition, regional differences in the response of house prices to movements in the stock market are found.
Bibliographical noteThis is an Accepted Manuscript of an article published by Taylor & Francis Group in Regional Studies on 13 August 2020, available online at: http://www.tandfonline.com/10.1080/00343404.2020.1795108
- General Social Sciences
- General Environmental Science