In a paper entitled ‘Transforming Places: Housing Investment and Neighbourhood Market Change’, it found that while economic conditions were one of the biggest determinants of house prices, having a greater mix of social and private housing was also important in maintaining healthy prices across the housing spectrum.
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The paper stated the view that social housing was detrimental to private property prices was a myth and the benefits to the environment of the areas outweighed any negative social impacts, stemming from more people living in the area.
The report stated: ‘New social housing appears more positive than negative in its direct effects on price level and change, particularly at local authority level. But these findings on the effect on house prices of new social housing must be weighed alongside evidence of generally negative impacts on other outcomes, including indirect effects through reinforcing the concentration of households living in poverty in deprived areas.’
However, it warned that the government’s Pathfinder scheme may not provide the boost to house prices that was hoped as demand in these areas was not sufficient to meet the supply.
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While it admitted it was too early to draw any definitive conclusions, it warns the government mustn’t be too hasty in building homes in regeneration areas if the demand for the properties didn’t exist.
Paul Fincham, senior media relations officer at Halifax, said: “The largest determinant of house prices is employment. The South East is a good example, with the supply of housing not meeting the demand from those moving to the area because of job opportunities.”
