Growing Employment Rate in Yorkshire: Good News for Property Prices?
Yorkshire and The Humber had the highest year-on-year employment rate rise, according to the Office for National Statistics. And, when you combine this with the latest research from Lloyds Bank that house prices grow quicker when unemployment falls, that means our region must be on to a winner. Right?
When we look at four of our main areas, we see that there certainly seems to be a positive correlation. Values in York have risen £1,795, in Leeds by £1,126, in Doncaster by £828 and in Selby by £773 – that’s percentage increases of 0.64%, 0.56%, 0.55% and 0.41% respectively - within just the last three months.
What does the research say?
“Areas with the largest improvements in unemployment have typically experienced above average house price rises over the past decade”. This has been by as much as £100,000, with the average hitting 48% increases, 23% more than the average across Great Britain.
According to Lloyds Bank Mortgage Director, Andrew Mason:
A strengthening job market helps to boost confidence, puts more cash into customers’ pockets and also makes it easier to secure a mortgage. These developments all help to increase the demand for homes, which leads to increasing property prices.
A quick look at the Employment Rates
Over the last registered year, Yorkshire and The Humber saw the largest employment rate increase across the whole of the UK, with a growth of 2.2 percentage points.
Here are the employment rates by region and comparison:
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