House prices have soared by nearly £100,000 in the areas of the UK that have experienced the largest declines in unemployment figures, according to research from Lloyds Bank. Conversely, the 10 areas with the highest unemployment figures posted just 10% growth since 2007 – less than half of the national average: 25%.
Areas with declining unemployment have seen an average growth of 48% over the course of the last decade, almost double the national average. This percentage refers to the 20 areas with the largest unemployment falls, but by focusing on the top 10 alone, the figures are even more impressive at an average of 53% between 2007 and 2017.
Disassembling the figures further sees London’s Waltham Forest as the best performing area over the last ten years. As unemployment has fallen in the area, property growth has reached 92% showing financial improvement from £233,779 to £449,384 on average.
Unemployment figures have improved for many areas of the country, and house price gains have been exceptional in these regions, for the most part, as some parts of the country have recorded modest growth against vastly improved unemployment figures.
Liverpool is one such area that has seen just 8% growth, despite strong employment improvement, Halton at 7%, and Knowsley at 5%. While these figures distort the average for the best performing areas in terms of unemployment decline, data from the last ten years suggests the areas have all had employment rates well below average and are simply coming up to national average figures.
Areas with high unemployment are seeing much lower growth figures than the national average overall but have seen growth in line with the national average when observing the figures from the last ten years at around 25%.
It is positive to see such strong growth in the UK but the reduction in unemployment is just one factor contributing to price gains. The creation of new jobs in various regions of the UK is a driving force for developments and price growth – this goes some way to explaining why areas such as Waltham Forest have flourished as several businesses have settled close by to the area and generated job opportunities.
The research from Lloyds Bank also highlights affordability and the supply-demand balance as the major factors affecting growth in the UK, alongside the employment figures. Across the country, 25% growth (£49,557) has been recorded for the last ten years while the national unemployment rate was roughly 2.8% for the decade.
Considering the country experienced a large-scale recession during this time, it seems only right that the UK be content with the price gains and overall reduction in unemployment despite many areas seeing unemployment remain flat or even experiencing increases in claimants.