Universities' global research ambitions and their localised effects

The world's top universities compete for the best international students and staff whilst remaining socially, politically and economically intertwined with the cities that they are located in. This paper analyses this relationship through the lens of the housing market to show the impact of universities’ global research centres on local house price within five of UK's historic cities. To date, these complex effects have been largely ignored in local and regional modelling. By applying a novel spatio-temporal model, we find that the spatial house price effects are much more pronounced in Cambridge than that witnessed in the other comparable UK cities. This not only suggests the relationship between the university and city economy is more interrelated but that its research centres may create localised spill over effects on both businesses and residents. Whilst these relationships are likely to differ across locations, housing shortages remain a universal concern. This suggests that to sustain international competitiveness of cities requires sound planning and housing policies that support universities’ growth trajectories.