The Housing Crisis Flashcards
(13 cards)
What is the main argument of the essay regarding land availability and housing affordability?
The essay argues that while land availability contributes to housing unaffordability, its role is often overstated. Access to finance and credit plays a more significant role.
How does Alonso’s bid-rent theory explain land allocation?
Alonso’s (1964) bid-rent theory illustrates how land is allocated to the highest bidder, with land values reflecting accessibility and profitability.
What do Cheshire et al. (2014) argue about restrictive planning systems?
Cheshire et al. (2014) argue that restrictive planning systems, particularly greenbelt policies, artificially constrain land supply, inflating prices.
What is Gallent’s (2019) critique of treating housing as a standard commodity?
Gallent (2019) argues that housing cannot be treated like a standard commodity due to its social function and inelastic supply.
What distinction does Stratford (2022) make between ‘demand’ and ‘need’?
Stratford (2022) distinguishes between ‘demand’ (reflecting purchasing power) and ‘need’ (reflecting housing necessity).
What do Ferm et al. (2020) say about Permitted Development Rights (PDR)?
Ferm et al. (2020) critique PDR for enabling the conversion of commercial properties into substandard housing, prioritising quantity over quality.
How does Gallent (2018) describe the transformation of housing?
Gallent (2018) describes the transformation of housing into a financial asset, driven by global capital flows and the expansion of mortgage credit.
What does Harvey’s (1978) theory of capital switching explain?
Harvey’s (1978) theory of capital switching explains how surplus capital is channelled into the built environment, fuelling speculative investment and price inflation.
What impact did financial deregulation have on mortgage lending in the UK?
Financial deregulation significantly expanded mortgage lending, with residential mortgage debt in the UK quadrupling to 80% of GDP between 1980 and 2008 (Ryan-Collins, 2024).
What role does Stratford (2022) attribute to political decisions in housing outcomes?
Stratford (2022) emphasises the role of political decisions, such as the privatisation of social housing and deregulation of tenant protections, in shaping housing outcomes.
What do Ward and Aalbers (2016) argue about rent extraction in financialised housing markets?
Ward and Aalbers (2016) argue that rent extraction is enabled by the conflation of land and capital, allowing housing to be treated as a financial asset rather than a social necessity.
What example illustrates the impact of planning deregulation on housing quality?
The example of Permitted Development Rights (PDR) in England illustrates how planning deregulation can lead to the conversion of commercial properties into substandard housing (Ferm et al., 2020).
How does the essay conclude on the role of land availability and finance in housing unaffordability?
The essay concludes that while land availability contributes to unaffordability, access to finance and credit has played a more transformative role. Both factors must be understood within a broader political-economic context.
