The Variegated Financialization of Housing

Abstract

There is a small but growing literature on the financialization of housing that demonstrates how housing is a central aspect of financialization. Despite the varied analyses of the financialization of housing and the importance of housing to financialization, the relations between housing and financialization remain under-researched and under-

Embedding financialization: a policy review of the EnglishAffordable Homes Programme

“…Deutschman (2011) argues that inancialization can be seen operating at the macro-level (such as the studies by Arrighi, Krippner and Stockhammer), meso-level (studies by Froud et al, 2000;Haslam et al, 2015) and the micro-level (studies such as Langley, 2008;Martin, 2002). Aalbers (2017) recognizes the impact of inancialization on the state and state inances as part of the meso-level processes (Deutschman, 2011).…”

“…In the housing literature, there is a growing focus on inancialization (Aalbers, 2016(Aalbers, , 2017 which includes showing how social housing providers have become active in the derivatives market (with disastrous consequences in at least one case, the Dutch housing association Vestia) . Other housing studies have addressed the resistance that inancialization of housing has generated (Fields, 2015); predatory lending practices (Newman, 2009); the changing nature of housing association inance sources (Wainwright & Manville, 2017) and securitization of mortgages (Aalbers, 2008).…”

“…Financialization is a multifaceted process that seeks to explain the increased role and power of the inancial markets in society (Aalbers, 2016(Aalbers, , 2017Cooper, 2015;Fine, 2010;Lapavitsas, 2009). Speciically, the paper shows that the AHP not only leads to increased debt levels in the social housing sector but is also predicated on short-termism (Cooper, 2015).…”

“…Research into the role of inancialization in and through the state and public services is still in its infancy (Aalbers, 2017). Aalbers (2017) observes the contradictory actions of diferent state actors towards inancialization: 'Some state agents actively -but not always consciously -create the conditions for the inancialization of housing and other assets, sectors and markets … while other state agents may try to limit inancialization pressures' (Aalbers, 2017, p. 550).…”

“…Aalbers (2017) observes the contradictory actions of diferent state actors towards inancialization: 'Some state agents actively -but not always consciously -create the conditions for the inancialization of housing and other assets, sectors and markets … while other state agents may try to limit inancialization pressures' (Aalbers, 2017, p. 550). he analysis below highlights how a government department (DCLG) is mobilized to increase inancialization in the social housing sector; but in the process its policy also has implications for the housing beneit budget of another department (DWP).…”