Information transparency and pricing strategy in the Scottish housing market

Purpose Information transparency is crucially important in price setting real estate, particularly when information asymmetry concerned. This paper aims to examine how a change government policy relation disclosure and impacts residential estate discovery. Specially, this investigates traders determined asking prices the context of Scottish housing market before after implementation Home Report, which aimed prevent artificially low prices. Design/methodology/approach uses spatial lag hedonic pricing models empirically observe are by property sellers response that designed enhance transparency. It over 79,000 transaction data Aberdeen for period Q2 1998 2013 test models. Findings The empirical findings provide some novel insights determination within Scotland. suggest autocorrelation has increased since Report came into effect, indicating have become more prone infer based on prior sales dwellings close vicinity. once-common practice seems dwindled certain extent statistically. Originality/value importance understanding relationship between gathered momentum past decade. Although techniques been extensively used study impact various property- neighbourhood-specific attributes general, surprisingly little known about