Duncan Maclennan

Economic perspectives on the structure of local housing systems

Abstract This paper examines the notions of market and sub‐market in the context of housing. It first proposes specific definitions and then clarifies why the general characteristics of housing are likely to generate sub‐markets and why these will tend to exhibit disequilibrium of different forms and durations. These sub‐markets may be sectoral or spatial, or indeed both. Empirical evidence on the existence of sub‐markets is put forward with respect to certain Scottish cities, using hedonic and other techniques. Finally, the implications of the existence of sub‐markets for the stability of local housing systems are assessed.

Neighbourhood Effects Research: New Perspectives

Over the last 25 years a vast body of literature has been published investigating neighbourhood effects: the idea that neighbourhood characteristics can have a significant effect on residents’ life chances over and above the effect of their individual characteristics. There is little doubt that neighbourhood effects exist, but we know little about the causal mechanisms which produce them, their relative importance compared to individual characteristics, and under which circumstances and in which places these effects are important. This chapter discusses some of the main theoretical and empirical challenges in neighbourhood effects research, related to the identification of true causal effects. An over emphasis on statistical techniques to overcome the problems related to modelling selection bias had distracted us from a much more important issue: the theoretical and empirical identification of potential causal pathways behind neighbourhood effects. This chapter offers seven ways forward for neighbourhood effects research: development of clear hypotheses; empirically testing explicit hypotheses; investigating neighbourhood selection; integrate models of neighbourhood selection and models of neighbourhood effects; investigate various spatial scales; development of better longitudinal data; and the use of mixed methods research.

The future of social housing: Key economic questions

Abstract The merits of market and non‐market, or social, housing provision are often debated on the basis of entrenched conceptions of market and bureaucratic systems. From an economic perspective, this paper challenges the validity of traditional ‘polar’ arguments in support of state or market provision, concluding that there is no ex‐ante case favouring one system over the other. In either case, the critical factor in efficient production and management is the design of housing delivery systems, encompassing issues such as external efficiency pressures, internal incentive structures, controls over managerial discretion, and organisational structure. The paper considers key aspects of system design and concludes that appropriately configured not‐for‐profit producers should be able to operate as efficiently and effectively as profit‐making market providers and that they may have policy advantages in periods of adjustment to excess demand for housing

Understanding Neighbourhood Dynamics: New Insights for Neighbourhood Effects Research

Non-random sorting of residents into neighbourhoods provides neighbourhood effects researchers with a major challenge: The neighbourhoods which people ‘choose’ reflect their incomes, and as a result neighbourhood characteristics are endogenous, causing bias in models of neighbourhood effects. So understanding neighbourhood choice and neighbourhood dynamics is at the heart of a better understanding of neighbourhood effects, but is also crucial for literatures on residential mobility, segregation, and neighbourhood change. This chapter offers a state-of-the-art overview of literature on neighbourhood dynamics. First, a range of theories regarding neighbourhood dynamics are discussed. Second, the chapter offers an extensive summary of the 11 other chapters in this book, with empirical contributions from the United Kingdom, Australia, Sweden, The Netherlands, and the USA. Through this overview, this chapter offers insight into the latest developments in research on neighbourhood dynamics.

Evidence, What Evidence? The Foundations for Housing Policy

Developments in housing policy and practice have been marked by strong ideological stances and a persistent unwillingness to clarify ends and means, so that key policy questions remain unresolved. Evidence can, and does, impact on policy, but only under certain conditions; for example, if it relates to a specific policy question, is restricted to the interests of a single government department and, especially, if it implies reductions in public spending. Moreover, housing’s complexity and relationship with a range of policy areas requires a linked perspective, at a local scale. A predominance of sector-specific, cross-sectional and qualitative research, allied to inadequate data impede the production of evidence to meet this challenge.

Localism, devolution and housing policies

In this study, we examine the idea of localism in the context of housing policy and as mediated by the experience of devolution in England and Scotland. After considering arguments for adopting localism in principle, we examine the meaning and limitations of the concept when account is taken of the real nature of housing systems. This forms the basis for a consideration of the experience of localism in the context of social housing provision. We conclude that the implementation of localism by UK policy-makers has exhibited shortcomings and the emerging interpretation of localism may lead to policy dumping rather than enhanced real local autonomy.

Intra‐urban changes in housing prices: Glasgow 1972–83

Abstract Despite the widely acknowledged importance of house prices and the rate of house price appreciation within the urban system there has been relatively little empirical work to explore intra‐urban differentials in these factors. This has been due in some part to the lack of any longitudinal microdata on house prices. This paper uses a unique database held in Glasgow to examine small area change through the decade 1972–83. In particular the wide variations in the rate of house price appreciation will be discussed and related to the characteristics of the houses and their neighbourhoods, as well as local policy on improvements. The observed patterns of price change are somewhat counter intuitive and point to the dangers of making a priori assumptions about the workings of housing markets. We are able to show that in Glasgow an extremely depressed labour market has not led to a depressed housing market.

Neighbourhood Effects or Neighbourhood Based Problems? A Policy Context

The introduction of this edited volume explores the links between neighbourhood effects research, perceived neighbourhood problems and the policy responses that local and national governments have pursued to ameliorate the impacts on individuals. We consider why the neighbourhood is frequently used as a site for local interventions and discuss the motivations that multiple national governments have put forward in making the case for area based policies. Previous research has been far from conclusive about how and where neighbourhood matter for individual outcomes: sometimes the neighbourhood context can be a key influence, in other cases it can appear to be relatively insignificant compared with individual characteristics. As a result, a persistent key question that regularly surfaces in discussions about neighbourhood effects and neighbourhood-based policies is whether or not place-based policies remain relevant if there is little conclusive evidence that neighbourhood effects exist. In response to this question, we suggest that even when casual neighbourhood effect are small or insignificant, there is still be a case to be made for investments in neighbourhoods to provide social facilities for communities and as an effective way to target spatially concentrated communities. However, drawing on a recent comprehensive review of place- and people-based policies in the UK there is an apparent disconnection between person- and place-based policies.

Emerging city policies: devolution, deals and disorder

In this article we consider whether the city policy frameworks that are currently emerging in England and Scotland, under the influence of devolution and localism, are likely to result in a locally effective yet nationally coherent set of economic outcomes or generate a disorderly pattern of local autonomies based on a series of ad hoc, local deals. Mindful of the context of slow economic growth and austerity, we look at the evolution of city policies in Scotland and England in the light of some rather fundamental requirements for cohesive decentralised policy design and implementation. Each can learn from the policy experiences of the other, but key questions remain as to whether sufficient resources and governance cohesion, to deliver greater city-led national economic growth, will emerge in England and Scotland.

Building Societies and Credit Rationing: An Empirical Examination of Redlining

Redlining in the housing market occurs when building societies explicitly delineate in some way sections of cities where they will not usually grant mortgages. This paper considers redlining as part of the broader question of credit rationing, and derives a number of alternative possible explanations of the spatial distribution of mortgage finance. These are considered using data on house sales, and surveys of building society managers and house buyers in Glasgow. The conclusions drawn are that, in the place and time period studied, the distribution of building society finance cannot be explained to any great extent by a simple loan refusal/area lending process.