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Regional housing price dependency in the UK: A dynamic network approach

Author

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  • Dayong Zhang

    (Southwestern University of Finance and Economics, China)

  • Qiang Ji

    (University of the Chinese Academy of Sciences, China)

  • Wan-Li Zhao

    (Beihang University, China)

  • Nicholas J Horsewood

    (University of Birmingham, UK)

Abstract

The cross-regional dependency in the UK housing market is analysed using regional house price indices. In this article, a network approach based on partial correlations is proposed, along with rolling-window analysis to consider potential time-varying dependency. The results show that house prices in the outer South East region have the strongest influence on regional housing market interactions in the UK. This influence is stronger when the markets are highly interconnected, whereas the house prices in London have the strongest influence when the UK regional housing markets are relatively less connected.

Suggested Citation

  • Dayong Zhang & Qiang Ji & Wan-Li Zhao & Nicholas J Horsewood, 2021. "Regional housing price dependency in the UK: A dynamic network approach," Urban Studies, Urban Studies Journal Limited, vol. 58(5), pages 1014-1031, April.
    • Handle: RePEc:sae:urbstu:v:58:y:2021:i:5:p:1014-1031
    DOI: 10.1177/0042098020943489
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