The establishment of markets for owner-occupation within public sector communities

Urban regeneration strategies in the UK have placed considerable emphasis on the development of homeownership and particularly low-cost homeownership. The paper assesses the long-term viability of local homeownership initiatives in public sector communities by reference to case studies in four UK cities. In particular, the research chronicles the housing market experience of localized initiatives and assesses whether in the long term a sustainable market is achieved. The research finds similar market characteristics for both public sector community and inner city homeownership initiatives. Internal demand and externalities create fragile markets. Initial purchasers of these houses acquired in general a poor long-term investment relative to opportunities elsewhere in the housing market. The research suggests that private housing developments within public sector communities are at least as successful as inner city estates for sale. However, while resale markets have developed in most of these estates prices are not high enough to establish sustainable markets.