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The psychological costs of unsustainable housing commitments

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  • P. Taylor, Mark
  • J. Pevalin, David
  • Todd, Jennifer

Abstract

We explore the impact of unsustainable housing commitments on psychological well-being using data from the British Household Panel Survey. We test the hypotheses that (i) housing payment problems, housing arrears and the threat of eviction and repossession have adverse impacts on heads of household’s psychological well-being over and above those caused by financial hardship and (ii) these impacts are larger for homeowners than for tenants. Our results indicate that for both men and women persistent housing payment problems have significant psychological costs. We find that for men entering arrears and the imminent threat of home loss has deleterious impacts on psychological health. The sizes of these effects are independent of and larger in magnitude to those associated with financial hardship more generally. We also find housing payment arrears have a significantly greater impact on psychological wellbeing among homeowners than tenants.

Suggested Citation

  • P. Taylor, Mark & J. Pevalin, David & Todd, Jennifer, 2006. "The psychological costs of unsustainable housing commitments," ISER Working Paper Series 2006-08, Institute for Social and Economic Research.
    • Handle: RePEc:ese:iserwp:2006-08
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    Cited by:

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    3. Felipe Kast & Dina Pomeranz, 2013. "Saving More to Borrow Less: Experimental Evidence from Access to Formal Savings Accounts in Chile," Harvard Business School Working Papers 14-001, Harvard Business School, revised Jun 2014.
    4. Gilbertson, Jan & Grimsley, Michael & Green, Geoff, 2012. "Psychosocial routes from housing investment to health: Evidence from England's home energy efficiency scheme," Energy Policy, Elsevier, vol. 49(C), pages 122-133.
    5. Helena Tunstall & Niamh K Shortt & Jamie R Pearce & Richard J Mitchell, 2015. "Difficult Life Events, Selective Migration and Spatial Inequalities in Mental Health in the UK," PLOS ONE, Public Library of Science, vol. 10(5), pages 1-13, May.
    6. Leigh Ann Leung & Catherine Lau, 2017. "Effect of mortgage indebtedness on health of U.S. homeowners," Review of Economics of the Household, Springer, vol. 15(1), pages 239-264, March.
    7. Jens Kandt & Shu-Sen Chang & Paul Yip & Ricky Burdett, 2017. "The spatial pattern of premature mortality in Hong Kong: How does it relate to public housing?," Urban Studies, Urban Studies Journal Limited, vol. 54(5), pages 1211-1234, April.

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