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Mismatch in the Housing Market

Author

Listed:
  • Chris Allen

    (University of Sussex, Falmer, Brighton BNI 9RH and Alistair Milne is at the University of Surrey, Guildford GU2 5XH)

  • Alistair Milne

    (University of Sussex, Falmer, Brighton BNI 9RH and Alistair Milne is at the University of Surrey, Guildford GU2 5XH)

Abstract

An economic model is presented of the rise of mortgage arrears and possessions. This indicates that the normal level of possessions is around 30 000 dwellings per year, but that between 1990 and 1996 an additional 300 000 households will exit the owner-occupied housing market. This short-term but substantial outflow from the owner-occupied housing market is producing a mismatch between empty dwellings remaining unsold and growing queues for accommodation from local authorities and housing associations. It is argued that this mismatch is economically inefficient and that it can be addressed through an increase in government expenditure to facilitate the transfer of dwellings out of the owner-occupied housing market.

Suggested Citation

  • Chris Allen & Alistair Milne, 1994. "Mismatch in the Housing Market," Urban Studies, Urban Studies Journal Limited, vol. 31(9), pages 1451-1463, November.
    • Handle: RePEc:sae:urbstu:v:31:y:1994:i:9:p:1451-1463
    DOI: 10.1080/00420989420081361
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    References listed on IDEAS

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    1. Kerry D. Vandell, 1993. "Handing Over the Keys: A Perspective on Mortgage Default Research," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 21(3), pages 211-246, September.
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    Cited by:

    1. Aron, Janine & Muellbauer, John, 2016. "“Modelling and forecasting mortgage delinquency and foreclosure in the UK.”," Journal of Urban Economics, Elsevier, vol. 94(C), pages 32-53.
    2. Janine Aron & John Muellbauer, 2010. "Modelling and Forecasting UK Mortgage Arrears and Possessions," Economics Series Working Papers 499, University of Oxford, Department of Economics.

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