Real Estate Prices and Capital Markets Liquidity: Understandiing the range of sources of liquidity that have become available in real estate markets and their impact on value

The financial crisis highlighted the important role played by liquidity in finance and property markets. At a macroeconomic level, securitization of real estate equity and debt through global capital markets means that commercial real estate is now, more than ever, interconnected with other investment classes available globally. Contagion from the US sub-prime residential mortgage sector that engulfed the capital markets around the world has had a material negative impact upon the commercial real estate markets at a time when market fundamentals were solid. In the UK, financial deregulation permitted more liquidity into real estate markets, reducing credit rationing. Coupled with financial product innovation, this provided more sources of liquidity for housing finance in the UK. However, while credit rationing may be reduced, exposure of the financial system to liquidity from mortgage-backed securities products (securitisation) was acutely felt by Northern Rock that was a precursor to the subsequent collapse of liquidity and the debt market in 2008 and 2009. Monetary policy also played its part. A wealth of recent literature indicates that increases in mortgage credit resulting from monetary policy fuelled housing demand and increased house prices. Prices rose with availability of liquidity and fell when liquidity dried up in the aftermath of the financial crisis. The focus of this PhD study will be to understand the range of sources of liquidity that have become available in real estate markets and their impact on value. In addition the study will consider how liquidity, the property market and the economy interact in a context of a liberalised financial system.

As a PhD student, you would be engaged research in an expanding area that is highly regarded externally. You would have an opportunity to work in a multi-disciplinary research environment that is essential in order to address societal problems and generate impactful research.

Specific qualifications/subject areas required of the applicants for this project
Entrants must have a first/undergraduate Honours degree, with an Upper Second Class or a First Class grade, in Economics, Finance, Statistics, Financial Management and/or Real Estate degrees. Entrants with a Lower Second Class grade at first degree must also have a postgraduate Masters Degree at Merit.

Panel members who will perform shortlisting

Chair: Dr Alla Koblyakova, E-mail: [Email Address Removed]
Panel member 1: Professor Michael White, E-mail: [Email Address Removed]
Panel member 2: Dr Adam O’Rourke, E-mail: [Email Address Removed]

Interviews are likely to take place on the following dates: 8th, 12th, 15th and/or 19th January

This studentship competition is open to applicants who wish to study for a PhD on a full-time basis only. The studentship will pay UK/EU fees (currently set at £4,195 for 2017/18 and are revised annually) and provide a maintenance stipend linked to the RCUK rate (this is revised annually and is currently set at £14,553 for the academic year 2017/18) for up to three years. Applications from non-EU students are welcome, but a successful non-EU candidate would be responsible for paying the difference between non-EU and UK/EU fees. (Fees for 2017/18 are £12,900 for non-EU students and £4,195 for UK/EU students). The studentships will be expected to commence in October 2018.