Price adjustment in the London housing market

Citation

Webb R, Watson D & Cook S (2021) Price adjustment in the London housing market. Urban Studies, 58 (1), pp. 113-130. https://doi.org/10.1177/0042098019878349

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.

Keywords
convergence; finance/financialisation; housing; prices; real estate

Journal
Urban Studies: Volume 58, Issue 1

People

Professor Robert Webb

Professor of Banking and Appl. Economics, Accounting & Finance