Bìznes Inform (Jun 2020)
The Public and Private Investment in the UK Housing Market from the 2nd Half of the 19th Century to the End of the 20th Century
Abstract
The housing market is a key component of any economy and the economic activity in general. With use of a sound socio-economic policy, it can be used as an engine of economic growth. Funding the housing market is an investment project per se. In the context of this issue, a study on the efficiency of investment in the housing market by public authorities, on the one hand, and private enterprises on the other, as well as the impact of such activities of each of the subjects on the market and society as a whole, is relevant. The research is aimed at analyzing the legal norms and methods of regulating UK housing relations from the 2nd half of the 19th century to the end of the 20th century through public and private investment, determining the efficiency of these investment subjects and their impact on the housing market. The basic legal rules for regulating UK housing relations from the 2nd half of the 19th century to the end of the 20th century are analyzed. It is determined that the expansion of government intervention and, subsequently, the direct exercise of the State’s investor functions in the housing market was related to the need to ensure public health and assist the poorest. The methods of government intervention (setting norms, standards, taxation, price and interest rate regulation, etc.) and their impact on the status of the housing market are highlighted. Data on the number of residential units created by sources of funding are presented and analyzed. Attention is drawn to the social problems that have become the catalyst for interventionist policies. The main problems and shortcomings of public housing investment are disclosed, in particular: construction of an inefficient bureaucratic system, its tendency towards self-expansion; institutional failure to acknowledge flops; lack of dialogue between local governments and municipal housing buyers, unlike the private sector, which has the ability to respond to the circumstances of objective reality, acknowledge shortcomings and eliminate them.
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