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The Impact of Land Use Planning and Tax Subsidies on the Supply and Price of Housing in Britain

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  • Glen Bramley

    (School for Advanced Urban Studies, University of Bristol, Rodney Lodge, Grange Rd, Bristol BS8 4EA, UK)

Abstract

This article presents new empirical estimates of the impact of two types of policy intervention, tax subsidies and land use planning, on the housing market in Britain. The estimates are derived from a set of models representing the demand and supply sides of the market for the new private housebuilding which include an explicit land supply element. The models are fitted to cross-sectional data at the inter-urban (local authority) level, and then employed in medium-period simulations of alternative policies. Modelling at this level enables estimates to be made of the extent of variation between local markets in the elasticity of supply and also in the impacts of policy measures, including the capitalisation of tax subsidies.

Suggested Citation

  • Glen Bramley, 1993. "The Impact of Land Use Planning and Tax Subsidies on the Supply and Price of Housing in Britain," Urban Studies, Urban Studies Journal Limited, vol. 30(1), pages 5-30, February.
    • Handle: RePEc:sae:urbstu:v:30:y:1993:i:1:p:5-30
    DOI: 10.1080/00420989320080011
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    References listed on IDEAS

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    1. Bover, Olympia & Muellbauer, John & Murphy, Anthony, 1989. "Housing, Wages and UK Labour Markets," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 51(2), pages 97-136, March.
    2. Olsen, Edgar O., 1987. "The demand and supply of housing service: A critical survey of the empirical literature," Handbook of Regional and Urban Economics, in: E. S. Mills (ed.), Handbook of Regional and Urban Economics, edition 1, volume 2, chapter 25, pages 989-1022, Elsevier.
    3. Paul Cheshire & Stephen Sheppard, 1989. "British Planning Policy and Access to Housing: Some Empirical Estimates," Urban Studies, Urban Studies Journal Limited, vol. 26(5), pages 469-485, October.
    4. Mayo, Stephen K., 1981. "Theory and estimation in the economics of housing demand," Journal of Urban Economics, Elsevier, vol. 10(1), pages 95-116, July.
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