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Owner‐Occupation at the Margin?: Tenure Choice Among Public Sector Tenants Since 1980
Author(s) -
McNabb Robert,
Wass Victoria
Publication year - 1999
Publication title -
the manchester school
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.361
H-Index - 42
eISSN - 1467-9957
pISSN - 1463-6786
DOI - 10.1111/1467-9957.00174
Subject(s) - margin (machine learning) , leasehold estate , public sector , housing tenure , labour economics , private sector , economics , quality (philosophy) , accommodation , constraint (computer aided design) , budget constraint , business , public economics , demographic economics , economic growth , microeconomics , economy , mechanical engineering , philosophy , engineering , epistemology , machine learning , neuroscience , computer science , political science , law , biology
In this paper we examine tenure decisions of public sector tenants following the Housing Act of 1980 which gave tenants the right to buy their property and a substantial discount on the purchase price. Tenure choice is found to be determined by the household budget constraint, life‐cycle characteristics and the quality of both the accommodation and the match between the household and the property, and is in many respects comparable with tenure choice in the private sector. As such, tenure transfers under the ‘right to buy’ initiative are efficient, undertaken by public sector tenants on the margin of owner‐occupation.