The nature of housing and neighbourhood varies eminently depending on several factors. Some of the core reasons for the variation may include security, household income, as well as government policy among others. As such, individual engagement to a housing market relies deeply on the complex mix of their economic ability, aspirations depending on the available options, and experiences. In that regard, the proficiency in these case will also entail the relationship with communities residing in a particular area. In the contemporary time, Britain in changing to a super-diversity state largely influencing immigration from both Europeans as well as individuals from other continents such as Africa, Asia, and Middle East. As such, the new entry of people has resulted to formation of new communities that will hence lead to diversified consumer market, changes in household income, and the class of people living in a certain locality.

Therefore, the movement of people will change quite greatly influenced by these factors. For example, high crime-rate area will not attract as many clients to renting or buying homes in such a neighbourhood, as may be the case for low-crime rate vicinity. Thus, it is the case that the latter will have higher demand rate, and thus increased costs as opposed to the former. The aim of this paper is to investigate the impact of neighbourhood in determining the pricing of housing market in the cities across the United Kingdom. As such, it will investigate the factors influencing the perception of the vicinity to the customers, as well as how those changes will affect prices and the decisions by different participants.

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Appropriate Economic Tools and Techniques

The analysis of the two, housing and neighbourhood, will entail the use of economic variables tool. The approach determines the existing relationship between the two variables. As such, it will be used to explore the challenges experienced by the second item for any variation made on the first variable. In that case, it will test the effects of neighbourhood on housing market in the United Kingdom. It will be expected that as various factors influencing neighbourhood changes, they cause its variation, which will in turn influence the change noted in the housing market. The core reason for the use of the technique is based on the fact that the two have an established connection between them. In this case, the dependent variable is the housing market while the neighbourhood factor is the independent variable. As such, the former will become influenced by the latter.

During the exercise, the optimization technique will become utilized. It helps in the identification of independent variables value, which may have contributed to the rise or fall of dependent variable. As such, it has significance in making reliable decisions. For instance, it will assist in determining the level of productivity that would most probably contribute to increase or decrease of the prices, hence creating an opportunity for proper understanding of the economic variables. Besides that, the approach focuses more closely on enhancing the different sectors available for the decision making purposes of the individuals concerned with the information.

Literature Review

According to Forest, housing and neighbourhood has numerous benefits which may include enhancement of security, and the nature of environment where children are brought up among others. The neighbourhood of an individual will determine how fairly they gain access to social development and engage with other members of the community. As such, the location will comprise of such features as the recent transaction prices, quality of health care, schools, and other infrastructure. It should as well depict the characteristics of a powerful sense of community. That means focusing on the activities that a community becomes engaged in before the buyers can make a purchase for the house. Therefore, the higher the chances that the population in a given vicinity encompasses characteristics of a community, the greater will be the demand, hence the more the price of properties in the locality.

A research work by Bramley, Leishman, Karley, Morgan, and Watkins, centred on England’s neighbourhood housing markets from the 1990s to 2000s. The study described and accounted for the change patterns present in the performance of housing market, with core interest on influences made by new investments. According to the report, the housing price differences for different neighbourhoods in London was influenced by the deprivation level. The higher the deficit there was in a certain vicinity, the lesser the costs. Such that, the areas with low security, and fewer public amenities had reduced costs as compared to those where such facilities were adequately provided.

As the disadvantaged areas improved over the provided time, the price of housing was also found to have changed, and was also in the rise. On the other hand, for those locations where the quality of life was falling, the housing market was as well noted to have declined. Besides, these areas were also found to have experienced migration of people from these areas to other better zones. According to Jerome Rothenberg, George Galster, Richard Butler, and John Pitkin, the housing markets could get influenced by factors both within as well as without the neighbourhood.

A working paper by Joel Marsden was as well found to have made similar observations noting that the changes in level of income and earnings for households in a certain vicinity contributed to the eventual variance in the housing prices. For example, it was found that as the income rose, the affected households moved to more improved vicinity. Others were found to have enhanced the amenities in their locality, hence raising the value of the housing prices in those zones.

Besides that, according to Robinson et al exploration of new migrants housing pathways in Sheffield, the safety and hostility of an area determined the house market. That has as well been supported by another study by Fieldsned and Reeve in the same vicinity of Sheffield, where some Polish foreign workers indicated that they had experienced in security in their initial temporary accommodation. In a similar way, a report done in Scotland indicated that despite the positive experiences migrants to Glasgow had experienced, there were deficits with respect to informational support.

Besides, it was also found that the vicinity in which these individuals had stayed were determined by their connection to their need to feel secure considering their foreign status. As such, it has been the case that in many cities in United Kingdom, foreigners have chosen to reside in a common neighbourhood, to increase their chances of having their community status noted. Therefore, areas with high Asian population for example, will continue to attract more members of the same community. At the end of it all, expectations are such that the demand will rise as the migrants’ increases, hence forcing the housing prices in the market to skyrocket. Thus, a neighbourhood will definitely get influenced by the flow of immigrants hence affecting their housing market.

Another research by Perry and El-Hassan focused on the impact of housing and neighbourhood on the British ethnic mix. As such, it paid attention to established minorities as well as migrants. According to them, no direct policy seen to have undertaken satisfactory account of the poor as well as insecure housing conditions in the privately rented houses in the neighbouring where these groups reside. Therefore, they notes that the neighbourhood programs have as well moved from community solidity focus.

Further, he argues that the diverse neighbourhoods as well as the super diversity should not become misinterpreted to mean lesser social capital for the vicinities. In that case, he recommends that more should get done to recognize the things that would work for the practice and policy. Focusing on his finding, it becomes clear that areas with minorities do not get adequate development. As such, the renting as well as purchase prices in these localities will remain quite low to encourage people to seek accommodation from them. Again, most migrants as well as minority groups have not had high enough income to enable them make purchases in high end housing. Therefore, the price variations will thus be experienced in situations where there are changes in the number of populations involved.

Besides, other areas such as the neighbourhoods with high student populations have been found to not attract individuals from the working class of the aged. That is mainly due to the difference in interests, and thus there will be variances in the type of houses build. While some homes are designed to hold an entire nuclear family, others can only hold one or two people. In such a situation, individuals with families will highly avoid purchasing such units or living in such neighbourhoods.

On most times, it has become clear that individuals interested in renting or purchasing houses seek for them in areas where they will have people of a similar stature to theirs. As such, the cost of households is quite high in areas where individuals hope to purchase family homes, as the demand arises. In the case of single people, it mainly apply for students, in which case the price for the renting will be quite low while the purchasing plan of the houses may be quite challenging. Therefore, the prices in this case remains at a manageable situation.

On the other hand, the neighbourhoods meant for the families have also other facilities for entertainment and unique to children, and hence more expensive to rent or buy houses in such localities. According to Buttler and Hammnett, geography and planning housing has become perceived as social resource available to households. The vicinity where dwellings are located offers nearness to neighbours who have distinct social-economic, as well as demographic features, and access to amenities located in the area. It also includes connectivity and services that spread over huge cities or regions.

The challenge of unfriendly neighbourhoods will keep residents away. When the Housing Subsidy Act of 1956 was passed, it had allowed the elimination of slums neighbourhoods in cities and towns. However, although this did work out for the country, the difference between the houses in the neighbourhood for the rich and the poor has not been eliminated. That means while most houses are better than the slum dwelling of the 1940s, the wealth have their segregated homes from same vicinities with the poor. As such the prices of houses in the different zones have varied depending on the features of the buildings, as well as other benefits that could be derived by residing in such a neighbourhood.

According to Somerville people form opinions and satisfactions on housing based on the improvement of the environment. Where the environment in the neighbourhood is encouraging, then more individuals will seek to reside in the area and vice versa. On his part, Kley S., observes that in most cases decisions about settling in a particular neighbourhood results from psychological barriers which may include the fear of crime, and one’s safety. As such, their usage of the local facilities will become a key determinant, and where they are available, the costs of houses in the localities have also been known to have risen. Besides, the more the local facilities there are, the more the price of the house is likely to become. According to Iwata and Yamaga, in some areas, only buying houses are available while the rental ones are in exclusion of the rental ones. That depends on the expected clients where some may not have an opportunity to live for more time in a given region.

On their part, Thomas Carter, Chesya Polevychok, and John Osborne, focuses on the importance of neighbourhood on resettlement. He observes that adequate and affordable are essential for the relocation of refugees and immigrants. The strategy increases the demand in the housing market particularly for certain vicinities where the groups will be resettled. Nonetheless, it may also be the case that some immigrants may have the ability to purchase for themselves houses in the United Kingdom. However, they look at the specific neighbourhoods where they feel protected and have access to various basic amenities. In their case, it would as well have connectivity to the nature of community that they would reside.

A housing and migration report indicates that most of the low cost localities have seen increased number of incoming people who want to be resettled in British neighbourhoods. The individuals contributes to increased demand for better housing scheme, besides putting pressure on social infrastructure, thus pushing the costs of the neighbourhood housing to increase rapidly. That means the governmental authorities in British cities and towns will have to increase investments on the social amenities to raise the status of the residences in the neighbourhoods among the refugees and immigrants.

In his work Greg Suttor considers neighbourhood and housing to be inseparable. According to him, the economists will make the value of a property to revolve about the dwelling location. Besides, he views house factors as social determinants in the houses and amenities located in a particular neighbourhood. Moreover, he observes that with limited money resources, people will have the fear of being ejected, and hence will reside in less expensive areas. In the United Kingdom, this has become a common thing among the immigrants and students both foreigner and locals. Where the crime rate is quite high, the potential clients will avoid getting property that may be located in such zones where they risks their lives. As an individual moves to better neighbourhoods, the price of the houses will rise together with the quality and the demand levels. Therefore, the type of neighbourhood which people decide to live in will highly depend on the features, as well as the capacity to pay for the facility.

Nevertheless, the vicinities do not inevitably influence the outcomes. Despite that, the use of the neighbourhood could impact on the causes of the results reached. Housing and neighbourhood are critical for several decision makers in provision of the vital information that could help in selection of a vicinity, as well as help in government planning in the future. Besides, these resources will also will have relevance in creativity and knowledge for potential home owners. For the vicinities that are deprived of social amenities and safety will discourage people from participating in them. More so, the needs and the interests of a particular group would reveal the networks followed by neighbourhood or the housing market.

Assumptions Made During the Study

Throughout the research, several assumptions were made. First, it was presumed that at the time of measuring the two variables, all the other influencing factors were held constant. Such that the only feature influencing the dependent variable was the independent variable. Therefore, it will be expected that the independent variable will make its changes uninfluenced by the behaviour of the other variable. However, the changes experienced for the dependent variable will result from the variations made by the other input. That, means while the neighbourhood factors will change independently, the price for the different products remains under the influence of the vicinity.

Those become the only two variable considered significantly important to achieving the intended results. Secondly, it was assume that as the demand of the houses increased, the pricing was also supposed to be on the rise. The opposite was also considered to be true. As such, the relationship between the two will be expected to be in form of direct connection. That means that as one increases, the other will as well be expected to rise. With the percentage of rise in each of them being constant. Thirdly, the assumption was that the percentage change on the independent variable will equal the change on the dependent variable. That has become used to ensure the information already captured information produced consistent information which could become usable for the progress of the study.


The relationship between neighbourhood and housing market price is such that as one changes, the other will not remain constant. The vicinity of the dwelling places for the different groups have indicated that it gets influenced by several factors including security and safety, as well as the community status. The research has established that individuals seeking to buy or rent a residence are looking for individual with similar interests as theirs, to ensure a harmonious and up to standard leaving. For example, some localities were designated for college students, and thus could not be used for rearing a family.

Again, social amenities as well as the income of the household were considered core determinants of the areas where one was likely to reside within a city or town in the United Kingdom. When all these factors are combined and the results weighed together, it provides a platform where individual perception about a given neighbourhood is recognized. As such, a particular value is attached to it where the some localities appear to have been more attractive to consumers than others. As the demand rises, the prices of the houses in the related neighbourhoods will also increase. On the other hand, the additional social amenities have as well increased the value of different neighbourhoods in the British housing market. Areas that had improved healthcare facilities, good and up to standard schools, and enhanced security, were considered to have had a higher value than those that did not have them.

In that case, their presence was considered in the determination of the prices thus making it part of price consideration. Therefore, as the value of a vicinity rose, so did the housing marketing price for the same area. Moreover, the population of people seeking residency was also found to have become influenced by culture of the people living in a given locality. For instance, it was established that foreigners always chose to reside in certain designated areas which made the housing price in those areas vary depending on the population for the group. The higher the number of people, the higher the demand, and hence the housing price. The opposite has also been found to be true.

Mar 23, 2020 in Informative
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