Housing Policy and Practice

Malpass, Peter; Murie, Alan

doi:10.1007/978-1-349-27443-7

Cited by 153 publications

(127 citation statements)

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“…Although the RTB program reduced the need of covering maintenance costs and subsidizing rents, local authorities had received little of the receipts from sales and still had a statutory duty to rehouse the homeless and those with pressing housing needs. Malpass and Murie (1999) point out that subsidies paid by local authorities to cover council tenants had fallen in nominal terms from £2.1 billion in 1980 to £1.2 billion in 1990 -a clear saving to local authorities. However, as these authors state, the number of applicants for council housing arising from homelessness more than doubled over the same period, from 63,000 to 146,000.…”

Section: Evolution Of Right To Buymentioning

confidence: 99%

The Right to Buy public housing in Britain: a welfare analysis

Luo¹,

Disney²

2016

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We investigate the impact on social welfare of the United Kingdom (UK) policy introduced in 1980 by which public housing tenants (council housing in UK parlance) had the right to purchase their houses at heavily discounted prices. This was known as the Right to Buy (RTB) policy. Although this internationally-unique policy was the largest source of public privatization revenue in the UK and raised home ownership as a share of housing tenure by around 15%, the policy has been little analyzed by economists. We investigate the equilibrium housing policy of the public authority in terms of quality and quantity of publicly-provided housing both in the absence and presence of a RTB policy. We find that RTB can improve the aggregate welfare of low-income households only if the council housing quality is sufficiently low such that middle-wealth households have no incentive to exercise RTB. We also explore the welfare effects of various adjustments to the policy, in particular (i) reduce discounts on RTB sales; (ii) loosen restrictions on resale; (iii) return the proceeds from RTB sales to local authorities to construct new public properties; and (iv) replace RTB with rent subsidies in cash.

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Section: Evolution Of Right To Buymentioning

confidence: 99%

The Right to Buy public housing in Britain: a welfare analysis

Luo¹,

Disney²

2016

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“…Whilst reducing the need for covering maintenance costs and subsidized rents, they had received little of the receipts from the council house sale programme and still had a statutory duty to rehouse the homeless and those with pressing housing needs. Malpass and Murie (1999) point out that subsidies paid by local authorities to cover council house tenants had fallen (in nominal terms) from £2.1 billion in 1980 to £1.2 billion by 1990 -a clear saving. Nevertheless, as those authors note, the total number of homeless families more than doubled over the same period, from 63,000 to 146,000.…”

Section: Evolution Of Right To Buymentioning

confidence: 99%

“…and the required payment rate for renting council housing, τ , is given by (7). To insure that RTB policies improve the welfare of low income households relative to the initial council housing rental system, a necessary condition is that the discount on RTB sales is not too low such that the require payment is less than or equal to τ .…”

Section: Rtb With Reduced Discountmentioning

confidence: 99%

The right to buy social housing in Britain: a welfare analysis

Disney¹,

Luo²

2015

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in Richard Disney Guannan LuoThe Institute for Fiscal Studies (IFS) is an independent research institute whose remit is to carry out rigorous economic research into public policy and to disseminate the findings of this research. IFS receives generous support from the Economic and Social Research Council, in particular via the ESRC Centre for the Microeconomic Analysis of Public Policy (CPP). The content of our working papers is the work of their authors and does not necessarily represent the views of IFS research staff or affiliates. The Right to Buy Public Housing in Britain:A Welfare AnalysisRichard Disney * and Guannan Luo † December, 2014Abstract We investigate the impact on social welfare of the UK policy introduced in 1980 by which public housing tenants (council housing in UK parlance) had the right to purchase their houses at heavily discounted prices. This was known as the Right to Buy (RTB) policy. Although this internationally-unique policy was the largest source of public privatization revenue in the UK and raised home ownership as a share of housing tenure by around 15 percentage points, the policy has been little analyzed by economists. We analyze the equilibrium housing policy of the public authority in terms of quality and quantity of publicly-provided housing both in the absence and presence of a RTB policy. We examine the incentives to purchase using RTB for households with different wealth trajectories and differing qualities of public housing. We investigate the welfare effects of various adjustments to the policy, in particular (i) tighter restrictions on resale; (ii) reduced discounts on RTB sales; and (iii) returning the proceeds from RTB sale to local authorities to replace part of the public properties sold. JEL Classification Codes: I38; R38

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“…During the 1980s, the policies of the Conservative government led by Margaret Thatcher had a significant impact on inequality, not merely through rising unemployment and increased poverty, but also in terms of housing tenure polarisation. In the 1990s, Malpass and Murie linked social exclusion to such tenure polarisation and the residualisation of social housing, arguing that social exclusion resulted from multiple deprivation and a causal process in which different elements reinforced one another (Malpass and Murie, 1994). At the time when New Labour came to power, the UK appeared to be a more unequal society.…”

Section: Stockton Borough Councilmentioning

confidence: 99%

Book review - Housing and Inequality

Harrington¹

2013

PPP

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Housing and Inequality is edited by Professor Isobel Anderson of the University ofStirling and Dr Duncan Sim of the University of the West of Scotland. This book assesses a wide range of recent research evidence to explain how inequality impacts on people's ability to access and pay for housing and the implications for housing professionals and policy makers.The links between housing and inequality are complex and this book contributes to this discussion. It is very much a timely reflection over the Labour government's intervention in housing policy and a view forward of the current Conservative -Liberal Coalition's housing policy and what this means for inequality. It aims to strike a balance between the general (income, employment) and the particular (disabled people, migrants, homeless people) aspects of inequality. Over 15 chapters contributors from across the UK and Europe utilise their own research covering a wide range of topics to disentangle and analyse the complex links between housing and inequality. Many of the debates are familiar, covering issues such as the effects of tenure, neighbourhood deprivation, migration and disabled people's needs, but with an update on issues and policy that address and tackle inequity. Several chapters also provide international comparisons, especially within the European Union.The 15 chapters are arranged into four key groups: subject overview; access to housing; communities; and individuals and minority groups. In the first two chapters the editors (Anderson and Sim) set the scene by considering the social exclusion, inequality and poverty and their links to housing policy.The following three chapters look at an individual's ability to access housing, covering areas such as income, deprivation, employment and wealth. The authors identify that inequalities occur across all housing tenures, regardless of if you are working and own your own home, renting or unemployed. National policies directly impact on the significance of housing tenure, with home ownership seen as a key indicator of wealth and government policies directly influencing house purchases.

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Housing Policy and Practice

Cited by 153 publications

References 0 publications

The Right to Buy public housing in Britain: a welfare analysis

The Right to Buy public housing in Britain: a welfare analysis

The right to buy social housing in Britain: a welfare analysis

Book review - Housing and Inequality

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