Socio-economic trends

The analysis shows disparity between the socio-economic profile of residents across high and low value housing markets, with the attractiveness of an area to more affluent buyers having a significant impact on value.

In the most expensive markets of each region 47% of adults are employed in managerial, administrative & professional positions, over five and half times the number in routine or semi routine occupations.

By contrast, in the lowest value housing markets those in routine and semi routine occupations are 40% higher in number compared those in the two highest socio-economic groups. In these locations 9% of inhabitants are long-term unemployed.

These trends are also reflected in the qualifications held by inhabitants with 44% having level 4 qualifications in the highest value markets across the regions and 31% having no qualification in the lowest value markets.

Across the regions the patterns are broadly consistent though. As would be expected, the proportions of higher socio-economic groups are greater across all tiers of the London market in comparison to, say, the North East.

These patterns are reflected in the employment industries that dominate each tier of the market.

High value employment markets such as professional, scientific & technical industries, information & communication industries, education and the financial & insurance services all become increasingly important in higher value markets.

By contrast, those employed in wholesale & retail trade, human health & social work and construction & manufacturing become much less so.

The category of public administration is largely unique in the context. It peaks in the middle value markets, with this cohort being priced out of high value markets without being confined to low value markets.

London differs in a number of critical ways being more polarised than other regions. The very high prices in the upper tiers of the market are supported by very high levels of employment in the professional, scientific & technical industries, information & communication industries, and the financial & insurance services sector.

In London, these professions account for 43% of those economically active in the most valuable areas (compared to an average 25% in the highest value markets across all regions). Those in public administration are represented in the capital's lower value markets, while those employed in education (who elsewhere are dominant in higher value markets) are concentrated in the middle tiers of the London market.

Taken from
Spotlight: A Housing Market Divided