Financialised Privatisation, Affordable Housing and Institutional Investment: The Case of England

Wijburg, Gertjan; Waldron, Richard

doi:10.13060/23362839.2020.7.1.508

Cited by 26 publications

(18 citation statements)

References 29 publications

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“…Indeed, Lilius and Lapintie (2020) also contend that current reform agenda in the privatised social nonprofit rental housing financialisation is changing the housing market structure and the interaction of housing market practices. The privatised financialisation has further infiltrated the 'quasi-market' space through the expansion of affordable rental homes which are now increasingly being managed, produced, or acquired by private equity firms and other institutional investors (Wijburg and Waldron, 2020) culminating in an increasingly polymorphous affordable housing sector emerging with a focus on multi-tenure and mixedincome housing tenures. This is serving to further convolute the housing system, quasiintermediary market and intricacies between integrated rental markets and systems, changing and indeed challenging the durable structures of housing and housing institutions and institutional path dependency (Bengtsson and Kohl, 2020).…”

Section: Price-to-rent Ratio For Housing Typesmentioning

confidence: 99%

“…Indeed, Aalbers (2016a) argues that whilst 'common trajectories' exist, changes within the housing system have engendered some distinct differences spatially across regional and national housing markets and path dependencies. These changes have altered the topographical nature of housing markets and the advancement of privatised housing products, the complexion of which has become more nuanced as financial players, such as private equity actors, enter into the affordable housing market space and challenge and change housing regimes (Wijburg, 2020).…”

Section: Price-to-rent Ratio For Housing Typesmentioning

confidence: 99%

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Rent or buy, what are the odds? Analysing the price-to-rent ratio for housing types within the Northern Ireland housing market

McCord

et al. 2021

IJHMA

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Purpose The price-to-rent ratio is often regarded as an important indicator for measuring housing market imbalance and inefficiency. A central question is the extent to which house prices and rents form part of the same market and thus whether they respond similarly to parallel stimulus. If they are close proxies dynamically, then this provides valuable market intelligence, particularly where causal relationships are evident. Therefore, this paper aims to examine the relationship between market and rental pricing to uncover the price switching dynamics of residential real estate property types and whether the deviation between market rents and prices are integrated over both the long- and short-term. Design/methodology/approach This paper uses cointegration, Wald exogeneity tests and Granger causality models to determine the existence, if any, of cointegration and lead-lag relationships between prices and rents within the Belfast property market, as well as the price-to-rent ratios amongst its five main property sub-markets over the time period M4, 2014 to M12 2018. Findings The findings provide some novel insights in relation to the pricing dynamics within Belfast. Housing and rental prices are cointegrated suggesting that they tend to move in tandem in the long run. It is further evident that in the short-run, the price series Granger-causes that of rents inferring that sales price information unidirectionally diffuse to the rental market. Further, the findings on price-to-rent ratios reveal that the detached sector appears to Granger-cause those of other property types except apartments in both the short- and long-term, suggesting possible spill-over of pricing signals from the top-end to the lower strata of the market. Originality/value The importance of understanding the relationship between house prices and rental market performance has gathered momentum. Although the house price-rent ratio is widely used as an indicator of over and undervaluation in the housing market, surprisingly little is known about the theoretical relationship between the price-rent ratio across property types and their respective inter-relationships.

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Section: Price-to-rent Ratio For Housing Typesmentioning

confidence: 99%

Section: Price-to-rent Ratio For Housing Typesmentioning

confidence: 99%

Rent or buy, what are the odds? Analysing the price-to-rent ratio for housing types within the Northern Ireland housing market

McCord

et al. 2021

IJHMA

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“…Access to REIT markets is provided by mutual funds managed by global financial intermediaries who have increasing influence on public policies at different levels (Wijburg & Waldron, 2020;Sanfelici & Halbert, 2015), which is part of a wider alignment of interests between financial actors and state authorities. Indeed, the establishment of REIT channels requires significant effort by central governments -inter allia, the creation of dedicated legal and regulatory frameworks, the transparent mediation of information, and standardization of performance metrics and assessments.…”

Section: Welfare Properties As a New Frontier For Investment In Liqui...mentioning

confidence: 99%

Financializing nursing homes? The uneven development of Health Care REITs in France, the United Kingdom and Japan

Aveline-Dubach

2022

Environ Plan A

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Population aging has led to the establishment of Healthcare Real Estate Investment Trusts (HC-REITs) to boost the supply of nursing homes, but these initiatives have met with contrasting success in different countries. This paper bridges two strands of research on financialization, social welfare and the built environment, to explain the uneven geography of HC-REIT development in France, the UK and Japan. It argues that nation-specific processes of nursing home securitization are shaped by the interrelationships between three crucial factors: (i) the regime of retirement income, (ii) public policies dedicated to long-term institutional care and (iii) the power relations between the REITs and care providers themselves. Drawing on discussions with experts in these sectors, the paper demonstrates that liberal welfare states such as the UK have an especially attractive profile for Healthcare REIT investors due to the advanced state of financialized pension reforms, significant state disengagement in the provision of long-term care and REIT-friendly regulations that facilitate investment operations and leases. On the one hand, these tendencies are driving financial investors to satisfy a growing demand for retirement savings in niche markets such as Healthcare REITs. On the other hand, value extraction is being increasingly sought through the capture of care-dependent residents’ home equity. By linking social benefit provisioning to later life housing accommodation, this article casts important light on current debates on the political economy of real estate financialization, while also emphasizing the need for continued state support for long-term institutional care.

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“…Concurrently, a series of factors facilitated the direct involvement of patient capital investors in the realm of social housing (Bloom, 2020; Wijburg and Waldron, 2020). Indeed, the links between patient capital and social housing are not new; whether in the form of bond-financing or bank-issued loans, private finance has long played a role in the funding structure of housing associations (Wainwright and Manville, 2017).…”

Section: The Entry Of Institutional Investors In Affordable Housing P...mentioning

confidence: 99%

Value ‘stripping’: Affordable housing, institutional investment, and the political economy of municipal debt

Bloom

2022

European Urban and Regional Studies

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In this commentary, I examine the role of institutional investors in affordable housing production in England, reflecting and expanding on the papers in this special issue on the governance of residential investment. Drawing on my research on the politics of municipal debt and local authority housebuilding in London, I provide a snapshot of the key regulatory changes that have enabled insurance companies, pension funds, and other institutional investors to extract profits from social and affordable housing. I also explore the politics and relations of power that underpin this transformed environment through a discussion of investors’ lobbying activities, and through an analysis of ‘income strip deals’, long-term leasing agreements between investors and local authorities that have gained popularity in recent years. In line with the authors in this issue, I argue that to grasp the recent wave of institutional investment in public housing, we need to pay attention to the narrative framings through which the promise of patient capital is enacted and legitimised, and to the range of regulatory actions mobilised to support and maintain the flow of value to rentiers.

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Financialised Privatisation, Affordable Housing and Institutional Investment: The Case of England

Cited by 26 publications

References 29 publications

Rent or buy, what are the odds? Analysing the price-to-rent ratio for housing types within the Northern Ireland housing market

Rent or buy, what are the odds? Analysing the price-to-rent ratio for housing types within the Northern Ireland housing market

Financializing nursing homes? The uneven development of Health Care REITs in France, the United Kingdom and Japan

Value ‘stripping’: Affordable housing, institutional investment, and the political economy of municipal debt

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