Network structure approaches in UK regional house market analysis

The UK housing market plays a vital role in shaping UK economic dynamics, with residential property serving not only as a consumption good but also as a key component of household wealth. Yet, Meen (1999) suggests that this market operates through a complex system of interconnected regional markets, where regional house prices are influenced not only by its specific fundamentals but also by national common factors and spatial spillovers. Understanding the structure of these inter-regional linkages is therefore critical for uncovering the underlying mechanisms of UK regional housing markets. This thesis applies novel network-based econometric approaches to investigate the spatial dynamics of UK regional housing markets, offering new insights through a unified framework of raising hypothesis, assumption formation, model development, empirical analysis, and validation. This thesis advances the literature by not only systematically analyse potential effects shaping UK regional house price dynamics, but also seeks to uncover the underlying structural drivers that give rise to these spatial housing interconnections.