Areas where unemployment has fallen most sharply have experienced above average house price rises over the past decade, according to Lloyds Bank.

The 20 areas that have recorded the largest falls in unemployment have, on average, seen house price gains of almost double the national average over the past decade: 48% against the Great Britain average of 25%.

The 10 areas with the biggest unemployment declines have seen an even larger house price rise, averaging 53%, between 2007 and 2017.

Top of the table

The best performing area amongst the 20 largest unemployment fallers is the London borough of Waltham Forest, which has experienced a 92% house price rise over the past decade from £233,779 to £449,384.

Those areas that have performed worst in unemployment terms over the past decade – either recording very small falls or a rise – have, on average, performed broadly in line with the national average in house price terms; 26% against 25%.

Seven of the 10 worst unemployment performers, however, experienced house prices gains that were below their region’s average, while the 10 areas with the highest unemployment rates recorded average house price growth of just 10% since 2007, less than half the national average (25%).

Lloyds Bank mortgage director Andrew Mason 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.”