The impact of supply constraints on house prices in England

Hilber, Christian A. L. ORCID: 0000-0002-1352-495X and Vermeulen, Wouter (2016) The impact of supply constraints on house prices in England. The Economic Journal, 126 (591). 358 - 405. ISSN 0013-0133

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Abstract

We test the theoretical prediction that house prices respond more strongly to changes in local earnings in places with tight supply constraints using a unique panel dataset of 353 Local Planning Authorities in England between 1974 and 2008. Exploiting exogenous variation from a policy reform, vote shares and historical density to identify the endogenous constraints‐measures, we find that: regulatory constraints have a substantive positive impact on the house price‐earnings elasticity; the effect of constraints due to scarcity of developable land is largely confined to highly urbanised areas; and uneven topography has a quantitatively less meaningful impact.

Item Type:	Article
Official URL:	https://academic.oup.com/ej
Additional Information:	© 2014 The Authors
Divisions:	Geography & Environment Spatial Economics Research Centre
Subjects:	H Social Sciences > HC Economic History and Conditions
Date Deposited:	21 Jul 2014 09:18
Last Modified:	14 Nov 2024 17:24
Funders:	National Housing Planning Advice Unit (NHPAU) Research Innovation Fund, National Housing Planning Advice Unit (NHPAU) Research Innovation Fund
URI:	http://eprints.lse.ac.uk/id/eprint/58017

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