Abstract

Literature on long run co-dynamics of British house prices is divided about the degree of convergence, which might be a function of the various methods of the empirically driven work and periods considered. Using the rank of the cointegrating matrix and reducibility, two overlapping super-regions emerge, characterised as the augmented North and South. With London found to be deviating from the south east, neither it nor the UK are likely to be indicative of regional series of the south of England. Moreover, with a multi-speed UK, house price convergence of any sort will be incomplete.