Modernism, Building, job housing balance, work from home etc

Question 1

Cost of housing intro (growth)

Answer 1

growing weight on household budgets (Molloy, 2020) 1/4 of renter households spent more than 30% of their income on rent in 1960 which has risen to 1/2 in the last decade (US)

Question 2

Regulation of planning (cost)

Answer 2

Adds a fixed cost to construction that leads to higher average house prices (Glaser and Gyro, 2003)

Empirically, 2016 survey has the average cost of complying with regulations at $84,000 per house (Emrath, 2016)

Question 3

Why planning is necessary

Answer 3

(Cheshire, 2018)

Market failure - localised negative externalities. value of land depends on the actions of neighbours who will not act in socially optimal interest.

Green spaces also need protection, benefit to restricting building (link to natures impact on health P11)

Question 4

UK vs other planning systems

Answer 4

UK has no set rules on planning permission.

US Zoning System or Master Planning system of Germany - far more simple

Question 5

1) Why is uncertainty bad (planning)

Answer 5

‘decisions are subject to the uncertain and gameable mechanism of ‘development control’’ (Cheshire, 2018)

Developers guided by IRR, uncertainty = cost because of delays, appeals and risk makes less projects profitable and attractive, reducing supply.

Mathematically shown by increased risk premium involved in discounting future cashflows

(Mayo and Sheppard, 2001) show this reduces building

Question 6

planning and competition

Answer 6

small developers may not be able to deal with the risks of planning or have the ability to diversify resources on different projects.

Thus, they are pushed out the market and bigger developers are left with less competition and an incentive to restrict supply in order to increase prices

Question 7

2) Strictness of UK planning system

Answer 7

UK system is directly reducing number of house built

• UGB and greenbelt
• Oxford’s greenbelt covers eight times the area of Oxford City (Cheshire, 2018)
• Planning height restriction
• 7 floor maximum in Islington and protected views flat out prevent increases in supply in in demand areas

Social and health importance is Important sometimes its ridiculous

Blocking building in an 18km corridor blocking St Pauls cathedral view

• view benefits a few people and is only visible a few days a year due to pollution and atmospheric conditions. UTILITARIANISM would disagree with it