EUKN - United Kingdom - Evaluation of English housing policy 1975

Evaluation of English housing policy 1975–2000: finance and affordability

Introduction

This report explains that the objectives of policies addressing finance and affordability are to support the required levels of new output and investment in the existing housing stock and to ensure that households are able to obtain reasonable housing at a price within their means.

Description

This report looks at:

the taxation and regulation of private sector housing;
supply subsidies and the regulatory framework in the social sector;
demand subsidies to assist individuals;
housing costs; and
the provision of safety nets to address problems of inadequate income and risk.

Background information

Housing policies addressing finance and affordability themes aim to support the required levels of new output and investment in the existing housing stock and to guarantee that households can obtain housing at a price they can afford. These policy objectives are affected as much by the macro economic environment and by wider government taxation, subsidies and regulations policies as by housing policies. In evaluating the impact of policies within this theme it is necessary to examine more than just the prices or rents that people pay for housing by also considering the effect of financing regimes on: investment in additional output; maintenance and improvement of existing stock; and the risks households and institutions face in maintaining consumption, output and affordability.

Methodology

The project examined the main areas relevant to housing finance and affordability namely:

taxation and regulation of private sector housing;
supply subsidies and the regulatory regime in the social sector;
demand subsidies to assist individuals’ housing costs; and
the provision of safety nets designed to tackle problems of inadequate income and risk.

Conclusions

This report:

suggests that most of the changes in housing finance policy were more a response to external pressures than proactive attempts to achieve specific housing goals;
notes that the deregulation of finance markets along with the need for constraints on public expenditure and requirements to increase public sector efficiency have been much more important in determining changes in financial regimes than housing specific objectives; and
finds that the system has not provided sufficient incentives or financial support to maintain output, particularly in the social sector.

Contact info

Office of the Deputy Prime Minister
Phone: +44 20 7944 4400
enquiryodpm@odpm.gsi.gov.uk

Publication date

01/01/2005

Project finished

Researcher

Christine Whitehead, Kenneth Gibb and Mark Stephens

Links

Office of the Deputy Prime Minister (now Department for Communities and Local Government)

Evaluation of English housing policy 1975–2000: finance and affordability (PDF, Eng, 795KB)

Document type

research

Themes

Urban Policy > Housing > Housing management

Keywords

Housing finance