Please enable JavaScript.
Coggle requires JavaScript to display documents.
Fractured Housing Markets - Coggle Diagram
Fractured Housing Markets
Reading Notes
Ideology
Homeownership ideology - American Dream - China the same - and the UK
Shlay, A.B - Low income homeownership: American Dream or delusion
"Ideologically, homeownership has been portrayed as a political right seemingly more popular than voting"
Key Reading
Generation Rent - Kim Mckee
- young people cannot afford this ideal
China has transformed its housing market from being dominated by rents to one of the highest rates of home ownership - Owning a home has become a mark of citizenship - Can Cui, Wenjeng Deng
Gender differences within reading
People looked down on for their housing choices
Aman, D and Yarnal, B - Mobile homes in Pennsylvania
Foucault - Space is microgoverned - society is saturated in power relations
- Readings by Jessop B and Lieb
Finland
The home ideology and housing discourse in Finland
also links to social difference
Scale
GFC
Global impact on the housing market
Neoliberalism
Links to ideology also
Politics wanted people to want housing
Ronald, 2008
Housing - Neoliberalism has influences policies and practices that emphasise a market-oriented approach, reduced government intervention, and increased leliance on private sector mechanisms,
Privatisation
David Harvey, Monopoly of private owners
Deregulation
Reduced subsidies for public housing
Marketization
Mortgage deregulation
Financialization
Raquel Rolnik - Late neoliberlism reading
Income inequality and gentrification
August, M and Walks, A, Gentrification in Toronto
Place
Key concepts in Geography - Holloway, Rice and Valentine
Social Difference
Race
Sites of resistance - bell hooks
Elvin K Wyly, Steven R Holloway - The disappearance of Race in Mortgage lending
Immigrant suburbanisation
Farrell, C - Spatial assimilation - easier to settle together
Key Reading
Links to suburbanisation of poverty -
Schafran A and Wegmann J - Restructuring Race
- highly uneven geography of the foreclosure crisis
Age
Generation Rent - Kim Mckee
- Generational differences - although ideology may be the same the reality is different
Class
B
enson, M and Jackson, E - Making the middle classes on shifting ground?
Useful to interpret widening inequalities within housing
Key Reading
Women Foreclosed - Gender analysis of housing loss in the US Deep South - Lichenstein
Women were a focus of subprime lending during the housing boom, increasing their risk of mortgage foreclosure during the great recession
Political fragmentation - Weiher, G.R
Feminist Geography in Practice - Edited by Pamela Moss
Divided access and the spatial polarisation of wealth
Parental assistance and class differences
Key ideas
Neoliberlism
Lecture Notes
Growth of homeownership in England
1914 - 11%
2003 - 71%
Government stimulated home ownership
Good for economic growth
Considered good politically
People who are owner occupiers have a financial stake in the country
Promotes stability
Binds people into the nation
Electorate like owning their own homes
Policy instruments
In the past there has been tax relief on mortgages
Capital gains tax - you do not get taxed on increase in housing value
Impact of inflation
Inflation above the normal level.
Increasingly difficult to buy a house
House price inflation is above normal inflation.
Between mid 1990s and 2007 - house prices increased 150%
Housing market - sustained growth until 2003
People spending a larger proportion of income on housing
Increasing tendency of women to remain in the labour force after having children.
Pressure for women to be in the labour force to cover the house price growth
Builders are building smaller houses in closer desnity
The Financial Crash - 2007+ Housing Crisis and 2008 financial crash
Mortgages funded
Changing the way that mortgages are given over time.
Mortgages were open to people who did not reach the original criteria
Pre-covid impacts of the financial crisis
Economy state and the people
British state responded and rescued banks to try and limit the impact on the British economy of the global financial crisis.
Did not stop the impacts on the housing market.
Credit market dried up
After the financial crash and before covid - people were investing in help to buy ISA's
Impacted on people who could not get a mortgage, people with negative equity, people who had shares in banks.
General notes
The age profile shifts upwards
Age group 16-34 down from 34% to 18%.
Mortgages are concentrated in the highest income quintiles
2.3 of mortgagors spend less than 20% of their income on housing costs.
The number of first time buyers is lower than 20 years ago
1995-96 - 922,000
2015-16 - <650,000
Mortgages secures on single income is going down and dual is going up
39% of people had mortgages in 2005-06 down to 29% in 2015-16
The aftermath is an interception of class and generation
Impacts of Covid
Working from home stimulates demand
More time at home meant house prices increased
Stamp duty holiday
Tax your pay on your home if it is worth more than a certain amount
This was suspended which caused a rush to buy houses
Overstimulation of house buying and selling
House price increase
End of ultra-low interest rates to come?
Has gone up - fear around people losing their homes because when people end their fixed rate mortgages people are unable to afford to pay their mortgage.
"Kamikaze" mini budget
Quasi Qaurteng and Liz Truss threw ‘economic rule-book’ in the air and caused a mini financial crash and they made decisions which could not be upheld which accelerated the rise in interest rates.
Currently house prices are generally stable - The BOE said they do not think that the issue us over - expect a dampening of house prices.
In Realtion to Coursework -
Ideology
of homeownership - agreed by right and left wing government - the state has supported the ideology of homeownership. - Argue that the economic ideology has contemporary impacts - battle ground in the next election. -
Scale
- scale is most obvious- GFC - started somewhere else and went around the world - affected Britain and the state responded but could not stop effects – effected the individual – has had a class and generational impact on who can own houses.
Social difference
is linked – gender and race – impact in America – in UK – more focussed on class and age.
The Rise and Fall of private renting - Evidence of decline in England
1914 – 90%
1947 – 60
1992 – 9%
2020 – 20%
Remaining stock
-Poor condition
-Between end of WW2 and 1990 – Landlords sold 3 million houses to owner occupiers.
Rise of Private Renting
Luxury Market - people moving around for work.
Student market - Urban process coined by Darren Smith - Strudentification. - Under Tony Blair - Labour 1987 had a focus on education - invested lots of money into school and uni education - nearly 50% of people going to uni up from 5% - those people needed housing- people going from small rental market halls to a large number of people needing accommodation - changed the nature of renting - impacted residential areas.
Gentrification in a way
Boom in private renting
Buy-to-let mortgages -July 1996 - prior to 1996 - you would have to have the money to buy a house to rent it out to someone
SOCIAL DIFFERENCE - largely to older middle class people borrowing against their cinema - high cost to students.
Profitable business for people
Implications of covid: - London rents decrease, race to suburbia, rents rising again, rising interest rates for buy to let mortgage owners are causing an increase in the rent for people.
Reading notes in document from lecture and reading - Home as tenure of choice powerful ideology
Fallacy of choice
Rise and fall of social renting
Development of Council Housing
- Public Housing in Europe - Emergence of public housing in Britain - Emerged after WW1, Homes fit for Heroes - Not much central government funding.
Post WW2 expansion
Labour government committed to developing the social sector – 1949 – housing act – not just housing for workers – also for the general needs of the community. - o New form of tender – housing 1/3 of population. - 1980 - Conservatives were also in favour of social housing at this point - Both political parties invested in social housing - At this point teachers were given council houses for example – different to now where social housing is for people who cannot get anything else.
Cuts under Thatcher
1st prime minister to adopt a neoliberal policy - in favour of market forces - sudden shift 1979 - from this point onward the provision went down - not building as many. - Right to buy policy - people have the right to buy their own council house at a reduced price. Remaining stock - people did not want to buy as they were not nice - no of council houses were reduced.
Housing Associations
Local Authorities to give their housing to these associations to run them. -
Ideology
the state did not want to run the housing - Most authorities gave their housing over - housing associations encouraged people to buy e.g. part rent part buy - they were forced to charge nearer market rents than the council were.
2015-16 Mean prices per sector - Private Renting= £184 - Mortgage = £159 - Council = £95 - Housing Assoc = £106
Bedroom Tax
What is it – post 2010 – people had spare rooms when their children had left home – therefore they no longer wanted to pay them a lower benefit – to encourage people to move to a smaller property. - harder for people when people came to visit and when children left for university.
Key problems - Harder to rent out council properties which were flats as families did not want them and couples would not accept the bedroom tax so they had to become dining rooms.
Conclusions
Multi-scalar – renting issues – private renting – less profitable for landlords – new financial product making people want to be land lords again – market impacts. - WW2 - impacts of council houses.
Social Difference - age and class.
Ideological importance - should the state provide housing?
Current statistics
Social Renting - 46% are in the lowest quintile of income
49% with long term illness or disablility.
21% are one parent households
Higher percentage of black people in social housing in London is to do with higher proportion of black people – not a racial issue necessarily.