The Impact of Changing Planning Policies on the Housing Market

P. Allmendinger, Michael James White

    Research output: Contribution to journalArticle

    65 Citations (Scopus)

    Abstract

    This paper provides a review of some of the key articles and research examining the relationship between planning regulation and its impact on the housing market in the UK and the US. In both countries, demographic change coupled with economic growth has increased demand for housing units and in the UK, over 4 million new units are estimated to be needed by 2016. Given these pressures, the interaction of the planning system and the housing market is critical. The articles reviewed below mainly adopt a mainstream economics approach to modelling the impact of planning on housing markets. They are concerned with outcomes. An additional or alternative approach is provided by behavioural analyses of the relationship between planning and housing development. These enable the more complex interactions to come to light. This paper indicates the differences that exist between the UK and US planning approaches; however, in both countries, planning constraints are seen to raise price, reduce supply, increase density and, in the UK at least, reduce choice. However, planning is also seen to provide certainty and reduce risk. Of key interest is the price elasticity of supply of housing. Post-war estimates suggest a value for the long-run elasticity to be between 0 and 1 for the UK, and 6 to 13 for the US.

    Original languageEnglish
    Pages (from-to)953-972
    Number of pages19
    JournalUrban Studies
    Volume40
    Issue number5-6
    DOIs
    Publication statusPublished - 2003

    Keywords

    • UNITED-KINGDOM
    • TAX SUBSIDIES
    • PRICE
    • IMPACT
    • BRITAIN
    • CONSTRUCTION
    • ELASTICITY

    Cite this

    The Impact of Changing Planning Policies on the Housing Market. / Allmendinger, P.; White, Michael James.

    In: Urban Studies, Vol. 40, No. 5-6, 2003, p. 953-972.

    Research output: Contribution to journalArticle

    Allmendinger, P. ; White, Michael James. / The Impact of Changing Planning Policies on the Housing Market. In: Urban Studies. 2003 ; Vol. 40, No. 5-6. pp. 953-972.
    @article{32c254cd14694d59b6651ed3d4b73372,
    title = "The Impact of Changing Planning Policies on the Housing Market",
    abstract = "This paper provides a review of some of the key articles and research examining the relationship between planning regulation and its impact on the housing market in the UK and the US. In both countries, demographic change coupled with economic growth has increased demand for housing units and in the UK, over 4 million new units are estimated to be needed by 2016. Given these pressures, the interaction of the planning system and the housing market is critical. The articles reviewed below mainly adopt a mainstream economics approach to modelling the impact of planning on housing markets. They are concerned with outcomes. An additional or alternative approach is provided by behavioural analyses of the relationship between planning and housing development. These enable the more complex interactions to come to light. This paper indicates the differences that exist between the UK and US planning approaches; however, in both countries, planning constraints are seen to raise price, reduce supply, increase density and, in the UK at least, reduce choice. However, planning is also seen to provide certainty and reduce risk. Of key interest is the price elasticity of supply of housing. Post-war estimates suggest a value for the long-run elasticity to be between 0 and 1 for the UK, and 6 to 13 for the US.",
    keywords = "UNITED-KINGDOM, TAX SUBSIDIES, PRICE, IMPACT, BRITAIN, CONSTRUCTION, ELASTICITY",
    author = "P. Allmendinger and White, {Michael James}",
    year = "2003",
    doi = "10.1080/0042098032000074263",
    language = "English",
    volume = "40",
    pages = "953--972",
    journal = "Urban Studies",
    issn = "0042-0980",
    publisher = "SAGE Publications Ltd",
    number = "5-6",

    }

    TY - JOUR

    T1 - The Impact of Changing Planning Policies on the Housing Market

    AU - Allmendinger, P.

    AU - White, Michael James

    PY - 2003

    Y1 - 2003

    N2 - This paper provides a review of some of the key articles and research examining the relationship between planning regulation and its impact on the housing market in the UK and the US. In both countries, demographic change coupled with economic growth has increased demand for housing units and in the UK, over 4 million new units are estimated to be needed by 2016. Given these pressures, the interaction of the planning system and the housing market is critical. The articles reviewed below mainly adopt a mainstream economics approach to modelling the impact of planning on housing markets. They are concerned with outcomes. An additional or alternative approach is provided by behavioural analyses of the relationship between planning and housing development. These enable the more complex interactions to come to light. This paper indicates the differences that exist between the UK and US planning approaches; however, in both countries, planning constraints are seen to raise price, reduce supply, increase density and, in the UK at least, reduce choice. However, planning is also seen to provide certainty and reduce risk. Of key interest is the price elasticity of supply of housing. Post-war estimates suggest a value for the long-run elasticity to be between 0 and 1 for the UK, and 6 to 13 for the US.

    AB - This paper provides a review of some of the key articles and research examining the relationship between planning regulation and its impact on the housing market in the UK and the US. In both countries, demographic change coupled with economic growth has increased demand for housing units and in the UK, over 4 million new units are estimated to be needed by 2016. Given these pressures, the interaction of the planning system and the housing market is critical. The articles reviewed below mainly adopt a mainstream economics approach to modelling the impact of planning on housing markets. They are concerned with outcomes. An additional or alternative approach is provided by behavioural analyses of the relationship between planning and housing development. These enable the more complex interactions to come to light. This paper indicates the differences that exist between the UK and US planning approaches; however, in both countries, planning constraints are seen to raise price, reduce supply, increase density and, in the UK at least, reduce choice. However, planning is also seen to provide certainty and reduce risk. Of key interest is the price elasticity of supply of housing. Post-war estimates suggest a value for the long-run elasticity to be between 0 and 1 for the UK, and 6 to 13 for the US.

    KW - UNITED-KINGDOM

    KW - TAX SUBSIDIES

    KW - PRICE

    KW - IMPACT

    KW - BRITAIN

    KW - CONSTRUCTION

    KW - ELASTICITY

    U2 - 10.1080/0042098032000074263

    DO - 10.1080/0042098032000074263

    M3 - Article

    VL - 40

    SP - 953

    EP - 972

    JO - Urban Studies

    JF - Urban Studies

    SN - 0042-0980

    IS - 5-6

    ER -