Areas with the largest falls in unemployment have seen house prices soar by almost £100,000 in past decade, Lloyds Bank research has revealed.
In contrast the 10 areas with the highest unemployment rate have seen prices rise by 10% since 2007, compared to the national average of 25%.
Andrew Mason, mortgage director of Lloyds Bank, said: “A number of factors have contributed to mounting pressures on house prices across the country in recent years, however, falling unemployment and the creation of more jobs are key drivers as this research highlights.
“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.
“However, in the recent recession of 2008-09 house prices fell in most areas of the country – even where the unemployment rate rose only marginally. This highlights other contributing drivers of price growth, besides the labour market, such as affordability and the supply-demand balance.”
In London’s Waltham Forest the employment rate has improved significantly, and correspondingly prices have risen from £233,779 to £449,384 in a decade.
Some areas buck the trend however, as many in the North West have seen unemployment fall but only achieved minor house price gains.
These include Liverpool (8% from £144,135 to £155,100), Halton (7% from 139,580 to £149,243) and Knowsley (5% from £134,231 to £141,075).