The political economy of housing in England

Abstract

Problems of housing affordability have been afflicting parts of the UK, especially the South East of England, for a number of years. The problem is closely related to shortages in housing supply, which are, in turn, largely associated with constraints imposed by the English land planning system. A leading theory for explaining these constraints posits that they reflect political economy forces that convey the interests of current homeowners to planning decisions in disproportionate and excessively influential ways. We test this theory by examining survey data on public attitudes to house building in local communities; and by investigating whether these attitudes are related to local planning decisions. We find that there is a tendency for owner-occupiers to express greater opposition to local house building and that, in the decade to 2011, the housing stock grew significantly less in local authorities with higher proportions of owner-occupiers among local households. The results suggest the risk that planning decisions might have been distorted in favour of current homeowners is real and economically significant. We discuss a range of historical, socioeconomic and policy trends that help explain why successive governments of various stripes have been reluctant to address head-on problems in housing supply and put a curb on house prices.

NIMBYism as Place-Protective Action: The Politics of Housebuilding

“…Recent survey evidence from the US shows that political conservatism is by far the most important correlate of opposition to dense urban development (Lewis and Baldassare 2010). In the UK, Conservative party voters are more opposed to housebuilding than those of other parties, even amongst homeowners (Coelho, Dellepiane-Avellaneda, and Ratnoo 2017;Matthews, Bramley, and Hastings 2015). Being older, a rural dweller or having long-term ties to one's community should matter too.…”

Can ‘Permission in Principle’ for New Housing in England Increase Certainty, Reduce ‘Planning Risk’, and Accelerate Housing Supply?

“…In her 2004 Review of Housing Supply for the then Labour Government, Kate Barker referred to this as an "implementation gap", attributable to the uncertainties of development planning, with its underpinnings in political discretion and the locally variable priority it gives to the demands of local voters versus the development sector (Barker, 2004). Recently, Coelho et al (2017) have drawn attention to the greater likelihood of proposals for residential development being rejected in authority areas with higher proportions of homeowners, adding weight to the argument that planning too regularly bows to relatively short-term vested local interests.…”

A case study of the financial benefits of a credit union’s homeless prevention scheme

“…Since the 1970s, there has been a reduction in council house building due in part to financial constraints arising from reductions in Government support and the depletion of existing stock by the right of existing tenants to buy council housing at heavily discounted prices (Coelho, Dellepiane-Avellandea and Ratnoo, 2017;Maclennan and More, 1999;Whitehead, 1983). The cumulative effect of these changes has been to reduce the capacity of local authorities to provide housing to either single people or childless couples, even if they are homeless.…”