Exuberance in the U.K. Regional Housing Markets

Pavlidis, Efthymios and Paya, Ivan and Peel, David Alan and Yusupova, Alisa Yevgenyevna (2017) Exuberance in the U.K. Regional Housing Markets. Working Paper. Lancaster University, Department of Economics, Lancaster.

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Abstract

We combine the estimation of a structural model with inference based on recently developed recursive unit root tests to analyse the behaviour of regional real estate markets in the U.K. over the last four decades. We find two episodes, the late 1980s and the early and mid-2000s, when all regional house prices experienced explosive dynamics above and beyond factors such as housing supply relative to demographics, income, regional spillovers and credit availability. This is the first econometric analysis to provide evidence that would endorse the view that ‘bubbles’, with a particular spatial pattern, are a feature of UK regional housing markets.

Item Type:
Monograph (Working Paper)
Subjects:
ID Code:
86186
Deposited By:
Deposited On:
04 May 2017 15:42
Refereed?:
No
Published?:
Published
Last Modified:
11 Jul 2020 02:48