Housing wealth distribution in the United Kingdom

Pryce, G. (2012) Housing wealth distribution in the United Kingdom. In: Smith, S.J. (ed.) International Encyclopedia of Housing and Home. Elsevier: Oxford, UK, pp. 691-696. ISBN 9780080471631 (doi: 10.1016/B978-0-08-047163-1.00133-8)

Abstract

Housing wealth affects both demand and supply sides of the economy. It is a significant driver of aggregate consumption and has potentially important effects on labour supply incentives and business start-ups. Uneven distribution of housing wealth across socioeconomic groups has led to concerns that expansion of homeownership introduces an additional driver of socioeconomic inequality and class reproduction, while others have argued that housing wealth inequality is merely an extension of existing inequities in labour market status. Empirical analysis of housing wealth is complicated by its stock-flow dynamics, life-cycle properties, and interactions with the mortgage market. There is little evidence, to date, that increased homeownership has led to substantially increased levels of housing inheritance, but this may be due to delayed cohort effects. In principle, spatial inequalities in housing wealth accumulation could follow geographical variations in the income elasticity of demand for housing during times of rising incomes. However, evidence suggests that housing wealth tends to move in cycles, with no obvious long-term upward trend.

• Item Type: Book Sections (Encyclopaedia entry)
• Status: Published
• Glasgow Author(s) Enlighten ID: Pryce, Professor Gwilym
• Authors: Pryce, G.
• College/School: College of Social Sciences > School of Social and Political Sciences > Urban Studies
• Publisher: Elsevier
• ISBN: 9780080471631

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