Mon 22 Dec 2014

Employment rise 'linked to property value growth'

A significant rise in property values has been shown in areas where employment has improved in recent years.

Areas of the country that have witnessed the strongest employment gains over the past decade have also seen the value of typical homes increase at more than double the rate of the national average.

Research published by Halifax has shown the top 20 performing areas in the UK in terms of rising levels of employment have seen on average 45 per cent growth in property values - compared to the national average of 21 per cent over the same period.

Meanwhile, areas where employment has struggled to increase or even fallen in recent years have seen the lowest growth in home values.

Responding to the results, housing economist at Halifax Martin Ellis commented: "This demonstrates the importance of economic conditions to the health of the local housing market."

He added that the clear relationship shown in the organisation's findings also point to the need for concerted efforts to bolster employment in order to deliver positive effects for an area over the long-term. 

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