Department of Communities and Local Government
- Dr Youngha Cho (Department of Real Estate and Construction), OISD: ILM
- Professor Christine Whitehead, Sarah Monk and Alex Fenton (Department of Land Economy, University of Cambridge)
- total grant value: £110,000
- time duration: November 2006 - January 2008
The aim of the research is to develop a robust model which enables estimates of take-up of new low-cost homeownership products and which can be easily adapted to examine different products and to assess the impact of varying assumptions. Research objectives are therefore:
- to identify the factors that influence take-up of different products.
- to investigate whether the decision to take up the products depends on household attributes, affordability, supply, relative user costs between tenures or other factors.
- to examine whether there are differences in the factors affecting take-up between regions and therefore between different types of housing market.
To achieve the research objectives, two tenure models, Shared Ownership and Homebuy have been developed. A merged data has been created from two different sets of data, the Survey of English Housing and CORE (COntinuous REcording) over the 6 year period between 2000 and 2005. Binary logistic regression models were used to analyse these data and to assess the relative importance of different factors.
The findings strongly suggest that the two products serve very different purposes. The major factors directly affecting take up mainly relate to household attributes and to housing market issues. Direct measures of user costs, affordability and house price changes are not significant. Also take-up differs both between schemes and regions.
This study enables DCLG to better estimate the likely take-up of different LCHO products and the factors that influence the take-up; and helps DCLG understand better the drivers behind potential future take-up of LCHO assistance.
- Cho Y. and Whitehead, C.M.E, 'Modelling the Take up of Low Cost Home Ownership Products in the UK', Paper presented to ENHR Conference, Dublin, 6-9th July 2008.
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