Market and non-market responses to the GFC: Housing Policy in the UK
política de viviendas
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AbstractIn this essay UK housing is characterised by a marked cyclical volatility, unhelpful secular trends and unwillingness by successive governments to tackle key underlying policy constraints. The credit crisis and subsequent recession came at the end of a long boom in the UK housing market where affordability problems and other pressures were already established. There was a considerable market downturn but it was as much about reductions in volumes and related asset prices (land) as it was concerned with falling house prices and rents. The threat of a much larger market downturn was an important element to the then Labour Government’s expansionary response. Recovery under the following coalition Government was patchy, slow in bedding-in and did nothing to address longer-term issues like access to home ownership, housing affordability or tackling a chronic shortage of new housing. Instead the UK saw a large increase in private renting. Government responded in a range of ways, sharply reducing capital programmes for social housing, and radically restructuring welfare benefits, while other interventions supported mortgage borrowing and private renting investment. Both scottish and northern irish devolved governments attempted to mitigate or prevent aspects of the welfare reforms. this paper defends the need to apply long term policies to reduce market volatility and restore affordability and adequate levels of new housing supply. But genuine consensus is needed if the required policies are to be allowed to have the two full parliamentary terms required if they are to to be properly developed and implemented.
(Revista) ISSN 0210-2633