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Price adjustment in the London housing market

Author

Listed:
  • Robert Webb

    (University of Nottingham, UK)

  • Duncan Watson

    (University of East Anglia, UK)

  • Steven Cook

    (Swansea University, UK)

Abstract

Recent research into the dynamic adjustment of prices within the London housing market is extended via the application of a novel two-step procedure. Combining the non-parametric analysis of the ranking distributions of the levels and changes in house prices with the application of a cross-sectional convergence technique results in the detection of a three-tier system in which highly significant convergence clubs are identified within borough-level data. These findings contrast with both the divergence apparent when considering all boroughs and the failure of previous research to identify convergent groupings. The novelty of the empirical methods is supplemented by a discussion of various theoretical factors such as gentrification, displaced demand, immigration, foreign investment and criminal activity in relation to the findings obtained.

Suggested Citation

  • Robert Webb & Duncan Watson & Steven Cook, 2021. "Price adjustment in the London housing market," Urban Studies, Urban Studies Journal Limited, vol. 58(1), pages 113-130, January.
    • Handle: RePEc:sae:urbstu:v:58:y:2021:i:1:p:113-130
    DOI: 10.1177/0042098019878349
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    References listed on IDEAS

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    1. Tsai, I-Chun, 2022. "Changes in social behavior and impacts of the COVID-19 pandemic on regional housing markets: Independence and risk," Journal of Behavioral and Experimental Finance, Elsevier, vol. 35(C).

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