The Impact of Supply Constraints on House Prices in England

Wouter Vermeulen and Christian Hilber

No 219, CPB Discussion Paper from CPB Netherlands Bureau for Economic Policy Analysis

Abstract: We explore the impact of different types of supply constraints on house prices in England by exploiting a unique panel dataset of 353 local planning authorities ranging from 1974 to 2008. Using 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 long-run impact on the house price-earnings elasticity; The effect of constraints due to scarcity of developable land is largely confined to highly urbanised areas; Uneven topography has a quantitatively less meaningful impact; The effects of supply constraints are greater during boom than bust periods.

JEL-codes: G12 R11 R21 R31 R52 (search for similar items in EconPapers)
Date: 2012-10
New Economics Papers: this item is included in nep-ure
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Citations: View citations in EconPapers (18)

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Related works:
Journal Article: The Impact of Supply Constraints on House Prices in England (2016)
Working Paper: The impact of supply constraints on house prices in England (2016)
Working Paper: The impact of supply constraints on house prices in England (2013)
Working Paper: The Impact of Supply Constraints on House Prices in England (2012)
Working Paper: The impact of supply constraints on house prices in England (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:cpb:discus:219

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