A summary of the analysis has been published by the National Institute for Economic and Social Research (Niesr).
It says: “When a neighbourhood appeals to a broader section of society, homes become easier to sell, reducing the risk associated with property investment.
“Moreover, multicultural neighbourhoods often boast better schools, public services, and opportunities for social interaction, indicators of the positive spill overs of cultural diversity.”
The researchers note that the relationship between cultural diversity and house prices is complex.
They say that “historically, research suggested people often prefer living near others like themselves,” a phenomenon known as homophily.
“In more culturally diverse areas, differences in cultural attitudes and norms can lead to lower levels of social cohesion and cooperation, or even – in rare cases competition and conflict.”
They suggest their research helps presents a more nuanced picture adding: “The attractiveness of multicultural areas suggests that encouraging diversity could be a powerful policy tool to regenerate neighbourhoods, improve public services, and foster social integration.”
The research was conducted by Rachel Cho, Hisham Farag, Christoph Görtz, Danny McGowan, Huyen Nguyen and Max Schröder, external.