Planning for Housing in the Post-Barker Era: Affordability, Household Formation, and Tenure Choice
Posted: 2 Jul 2008
Date Written: spring 2008
Abstract
The Barker Review of Housing Supply recommended the greater use of market indicators as the basis for providing sufficient land for future housing requirements. Worsening affordability would be a sign that more land is required. However, the traditional approach to land release used by planners is based on trend household projections. The paper shows that this will typically lead to worsening affordability over time. The paper, therefore, develops an alternative economic model more suitable to the post-Barker era, covering both household formation and tenure choice. The model is used to analyse a range of policy issues, including raising home-ownership rates and home-ownership sustainability.
Keywords: housing affordability, economic models, household formation, housing tenure
JEL Classification: R21
Suggested Citation: Suggested Citation