The Impact of Economic and Financial Factors on UK Property Performance

Journal of Property Research, Vol. 16, No. 2, pp. 139-152, 1999

Posted: 5 Dec 2004

See all articles by Chris Brooks

Chris Brooks

University of Bristol - School of Economics, Finance and Management

Sotiris Tsolacos

University of Reading - Centre for Spatial and Real Estate Economics (CSpREE)

Abstract

This paper employs a vector autoregressive model to investigate the impact of macroeconomic and financial variables on a UK real estate return series. Our results indicate that unexpected inflation, and the interest rate term spread have explanatory power for the property market. However the most significant influence on the real estate series are the lagged values of the real estate series themselves. We conclude that identifying the factors that have determined UK property returns over the past twelve years remains a difficult task.

Keywords: Property returns, macroeconomy, vector autoregressions

JEL Classification: C32, C52

Suggested Citation

Brooks, Chris and Tsolacos, Sotiris, The Impact of Economic and Financial Factors on UK Property Performance. Journal of Property Research, Vol. 16, No. 2, pp. 139-152, 1999, Available at SSRN: https://ssrn.com/abstract=626707

Chris Brooks (Contact Author)

University of Bristol - School of Economics, Finance and Management ( email )

School of Accounting and Finance
15-19 Tyndalls Park Road
Bristol, BS8 1PQ
United Kingdom

Sotiris Tsolacos

University of Reading - Centre for Spatial and Real Estate Economics (CSpREE) ( email )

Department of Economics Whiteknights P.O. Box 219
Reading, RG6 6AH
United Kingdom
44-0118-931-823 (Phone)
44-118-931-6533 (Fax)

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