Growth in home prices is inversely proportional to the unemployment rate

According to a new study of the UK property market, published by Lloyds Bank, the rising cost of real estate in different regions depends on the level of unemployment. In those regions where unemployment has fallen, the price of residential property increased much more than in other regions.

Prices for houses and apartments in Central London and the Northern parts of Scotland grew significantly faster than in other areas of the UK, and in those areas broken record on reducing unemployment.

In areas where over the last decade has seen the strongest decline in unemployment, the cost of real estate grew by almost £136000 pounds over these 10 years .

The average price of homes in 10 areas of the UK, which recorded the biggest decrease in the unemployment rate, rose from £198709 to £224404 , while the drop in the unemployment rate in these regions has reached to 1.3% over the same period.

In the Shetland Islands, for example, the average price of residential property more than doubled in 10 years, prices have risen by 104%. The following is a district of the city of London with a growth of 84%, then Southwark and WesternIsles with an increase of 78% , Lambeth with growth in property prices for the year to 76% and Tower Hamlets , which recorded price growth of 72%.

In all these regions there has been a drop in the unemployment rate in the range from 1.1% to 1.8%

The average for the UK the fall in unemployment recorded only at 0.5% but property prices have increased by about £36482 pound, up to £199039 pounds.

The regions with the slowest growth in property prices and rising unemployment is Northern Ireland and southern England.

Here you can select the city of Lisburn in Northern Ireland, where property prices fell by 5.5% in Belfast and 14%. Newport and Wales to 15% and Blackpool at 19%.

The unemployment rate now in all these cities is about 2.2% higher than in March 2004 .

Of course, except for the unemployment rate, yet many factors affect prices in the housing market. Main from them – availability, the ratio of supply and demand. In General, the situation on the island now is that for the next three years all the data suggests that the market prices of residential property in the UK will rise.

® Maxim Savitsky. 28.04.2014 G.

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