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An Investigation into the Spatial Distribution of British Housing Market Activity

Author

Listed:
  • David Paul Gray

    (Department of Accountancy Finance and Economics, University of Lincoln, Lincoln LN6 7TS, UK)

Abstract
This paper sets out to consider how a simple and easy-to-estimate power-law exponent can be used by policymakers to assess changes in economic inequalities, where the data can have a long tail—common in analyses of economic disparities—yet does not necessarily deviate from log-normality. The paper finds that the time paths of the coefficient of variation and the exponents from Lavalette’s function convey similar inferences about inequalities when analysing the value of house purchases over the period 2001–2022 for England and Wales. The house price distribution ‘steepens’ in the central period, mostly covering the post-financial-crisis era. The distribution of districts’ expenditure on house purchases ‘steepens’ more quickly. This, in part, is related to the loose monetary policy associated with QE driving a wedge between London and the rest of the nation. As prices can rise whilst transactions decline, it may be better for policymakers to focus on the value of house purchases rather than house prices when seeking markers of changes in housing market activity.

Suggested Citation

  • David Paul Gray, 2024. "An Investigation into the Spatial Distribution of British Housing Market Activity," JRFM, MDPI, vol. 17(1), pages 1-16, January.
    • Handle: RePEc:gam:jjrfmx:v:17:y:2024:i:1:p:22-:d:1314337
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    References listed on IDEAS

    as
    1. Kristian Behrens & Gilles Duranton & Frédéric Robert-Nicoud, 2014. "Productive Cities: Sorting, Selection, and Agglomeration," Journal of Political Economy, University of Chicago Press, vol. 122(3), pages 507-553.
    2. Montagnoli, Alberto & Nagayasu, Jun, 2015. "UK house price convergence clubs and spillovers," Journal of Housing Economics, Elsevier, vol. 30(C), pages 50-58.
    3. Robert Novy‐Marx, 2009. "Hot and Cold Markets," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 37(1), pages 1-22, March.
    4. Ron Martin & Peter Sunley & Ben Gardiner & Emil Evenhuis & Peter Tyler, 2018. "The city dimension of the productivity growth puzzle: the relative role of structural change and within-sector slowdown," Journal of Economic Geography, Oxford University Press, vol. 18(3), pages 539-570.
    Full references (including those not matched with items on IDEAS)

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