Developments in the provision of housing finance in the UK
Recommended reading for providers and designers of housing. The results of the housing finance changes in the UK included a wider range of institutions involved, significant developments in the source and delivery of that finance, as well as important changes in government policy opening up social housing to the private finance market, targeting subsidy more directly at particular groups of individuals and introduction of specific supply subsidies to new private rented sector. The considerable unease with certain outcomes is dealt with.
Efficiency and Stability of Housing Finance Systems: A Comparison of the United Kingdom and the United States
Abstract The U.K. and U.S. housing finance systems are two of the world's most efficient. Yet both systems exhibited instability during the past decade, as reflected in high rates of individual borrower and lending institution default. The difficulties stemmed primarily from the combination of macroeconomic policy instability and preexisting housing or financial market constraints. In the United Kingdom, volatility in monetary and fiscal policy interacted with constraints on housing supply and tenure choice to produce a speculative boom and bust in house prices. In the United States, constraints on mortgage contracts led to the insolvency of specialized housing lenders when there was an abrupt change in monetary policy. Three important lessons can be learned from these events. First, important linkages exist among housing markets, the housing finance system, and the broader economy. Second, although liberalization benefits the financial system, it can exacerbate preexisting market distortions. Finally, th...
Measuring housing need and the provision of social housing
Abstract The Bramley Report (ADC, 1988), made a detailed attempt to construct a resource allocation formula for social housing provision. In this paper we stand back from the debate over the detail of the models being proposed by Bramley to consider instead the principles which underlie the modelling of housing needs and resource allocation in this context. The measurement of housing need depends on a few key concepts; the definition of acceptable standards of accommodation, the total numbers of households, and the supply of housing of at least the required standard. Questions then arise as to which indicator should be included in a needs model and how they should be measured. Overcrowding and homelessness are likely to be included whether these indicators are chosen by consumers or by social decision‐makers. Having chosen the indicators they have to be ‘normalised’ to take account of cyclical factors in the housing market, and of the efficiency and policy stances of local authorities. After this the indi...