Poverty, Housing, and Market Processes

Peer Reviewedhttp://deepblue.lib.umich.edu/bitstream/2027.42/68441/2/10.1177_107808747200800108.pd

A Housing Affordability Standard for the UK

Since 1990 there has been extensive exploration of the meaning of housing affordability by members of the academic, professional and advocacy communities in Britain. These debates have revealed weaknesses in the traditional ratio standard of affordability and led to arguments in support of an alternative, residual income concept of affordability. However, so far there has been only limited success in operationalising and applying the residual income approach in the UK. In the US, by contrast, arguments in support of a residual income approach to housing affordability emerged in the late 1960s and early 1970s, culminating in the formulation of operational standards utilising normative family budgets. This paper draws upon the US experience to formulate a residual income housing affordability standard for the UK that utilises the non-shelter components of the Family Budget Unit (FBU) ‘Low Cost but Acceptable’ budgets as the normative standard for minimum adequate residual income. The paper concludes by suggesting how use of such a ‘shelter’ poverty standard to assess housing affordability problems and needs in the UK might yield results that differ from those based on the ratio standard

Summary of an Article on Reforming Land-Use Regulations

This article describes how excessive land use control adversely affects the cost of housing. Numerous studies showing the impact of over-regulation on housing costs are cited. The article provides both a historical and philosophical context for public land use regulation and describes key judicial decisions as well as competing public and private interests that shape the regulatory environment.Specific attention is given to the work of the Committee on Government Regulation and the Cost of Housing of the President's Commission on Housing. The various recommendations of the Commission are set forth, the central one being the enactment of state and local legislation to restrict zoning regulation to that which is necessary to achieve what the Commission terms a "vital and pressing" governmental interest. A number of other specific Commission recommendations are also enumerated including density of development, restrictions on manufactured housing, size of dwelling units, growth controls, farmland preservation, development standards and fees, and local permit processing. The article concludes with a strong statement regarding the need for public education as a prerequisite for reform. Copyright American Real Estate and Urban Economics Association.