The Economics of Housing Policy

In the late 1970s, the role of the state in the finance, provision and legal control of housing had increased enormously during the previous sixty years. But, despite massive government intervention in the housing market, the 'housing problem’ was considered by many to be worsening. Originally published in 1978, The Economics of Housing Policy critically appraises the nature, extent and economic rationale for government intervention in the private and public housing sectors, and explores the effects of policies through fiscal and social instruments in the specific housing markets. Individual chapters analyse the strategies applied to the owner occupied, private rented and public housing sectors. The fundamental concern of this study is with the persistent reluctance on the part of the government to accept the economic consequences of political intervention as each new act had attempted to remedy the adverse symptoms of previous legislation. The rented sectors had become increasingly inflexible, affecting household mobility, free choice and the quality of housing stock. A re-creation of housing markets, based on consumer preference rather than political predilection and bureaucratic control, is advocated in order to overcome the housing problem at the time.