Housing finance deregulation: Britain's experience

Stephens, M. (1993) Housing finance deregulation: Britain's experience. Netherlands Journal of Housing and the Built Environment, 8(2), pp. 159-175.

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Publisher's URL: https://www.jstor.org/stable/41107586

Abstract

This paper aims to assess the sustainability of housing finance deregulation in Britain. It traces the transformation of the housing finance system for owner occupation from one where building societies were protected from competition and loans were subject to non-price rationing to one where institutions competed freely for funds and customers and mortgage pricing became much more market-related. The newly deregulated housing finance system has been associated with the economic boom of the late 1980s and the slump of the 1990s. The nature of government intervention in the housing market during the recession up until Britain's exit from the Exchange Rate Mechanism (E.R.M.) is assessed, and it is concluded that deregulation has been sustainable. Nevertheless, it is suggested that the government may need to tackle the structural weaknesses in the housing system if future volatility is to be avoided. The case for such reforms is strengthened if Britain returns to the E.R.M. or participates in monetary union, because it will then lose control over its principal policy instrument, monetary policy.

Item Type:Articles
Status:Published
Refereed:Yes
Glasgow Author(s) Enlighten ID:Stephens, Professor Mark
Authors: Stephens, M.
College/School:College of Social Sciences > School of Social and Political Sciences > Urban Studies
Journal Name:Netherlands Journal of Housing and the Built Environment
Publisher:Springer Netherlands
ISSN:1383-2336
ISSN (Online):1573-7772

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