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Right to Buy… Time to Move? Investigating the Effect of the Right to Buy on Moving Behaviour in the UK

Author

Listed:
  • van Ham, Maarten

    (Delft University of Technology)

  • Williamson, Lee

    (University of St. Andrews)

  • Feijten, Peteke

    (University of St. Andrews)

  • Boyle, Paul

    (University of St. Andrews)

Abstract

One of the goals of the Right to Buy (RTB) was to stimulate labour migration by removing the debilitating effect of social housing on geographical mobility. This is the first study to examine rigorously whether the Right to Buy legislation did indeed 'free-up' those in social housing who bought their homes. Using longitudinal data from the British Household Panel Survey (BHPS) and panel regression models we show that the probability of a RTB-owner making a long distance move falls between that of social renters and owner occupiers. However, the difference between RTB-owners and neither homeowners nor social renters is significant. Social renters are significantly less likely to move over long distances than traditional owners. The results also suggest that RTB-owners are less likely than traditional owners to move for job related reasons, but more likely than social renters.

Suggested Citation

  • van Ham, Maarten & Williamson, Lee & Feijten, Peteke & Boyle, Paul, 2010. "Right to Buy… Time to Move? Investigating the Effect of the Right to Buy on Moving Behaviour in the UK," IZA Discussion Papers 5115, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp5115
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    References listed on IDEAS

    as
    1. Maarten van Ham & Peteke Feijten, 2008. "Who Wants to Leave the Neighbourhood? The Effect of Being Different from the Neighbourhood Population on Wishes to Move," Environment and Planning A, , vol. 40(5), pages 1151-1170, May.
    2. Dietz, Robert D. & Haurin, Donald R., 2003. "The social and private micro-level consequences of homeownership," Journal of Urban Economics, Elsevier, vol. 54(3), pages 401-450, November.
    3. Piet Rietveld & Peter Nijkamp & Jos van Ommeren, 2000. "Job mobility, residential mobility and commuting: A theoretical analysis using search theory," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 34(2), pages 213-232.
    4. Maarten van Ham & William A V Clark, 2009. "Neighbourhood Mobility in Context: Household Moves and Changing Neighbourhoods in the Netherlands," Environment and Planning A, , vol. 41(6), pages 1442-1459, June.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Philippe Bracke & Christian Hilber & Olmo Silva, 2014. "Homeownership and Entrepreneurship: The Role of Mortgage Debt and Commitment," CESifo Working Paper Series 5048, CESifo.
    2. Bracke, Philippe & Hilber, Christian A. L. & Silva, Olmo, 2012. "Homeownerhip and entrepreneurship," LSE Research Online Documents on Economics 58436, London School of Economics and Political Science, LSE Library.
    3. D. Isebaert, 2013. "Housing Tenure and Geographical Mobility in Belgium," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 13/855, Ghent University, Faculty of Economics and Business Administration.

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    More about this item

    Keywords

    longitudinal data; United Kingdom; moving reasons; migration; residential mobility; Right to Buy;
    All these keywords.

    JEL classification:

    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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