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The purpose of this paper is twofold: first, it derives the optimal loan-to-value (LTV)-ratio for a mortgagor that maximizes the return to home equity when considering the capital structure of housing investment. Second, it analyses the demand-side contribution to mortgage market variability across monetary policy regimes.

The paper endogenizes both the relation between the LTV ratio and the mortgage rate and the relation between LTV and the rate of appreciation. When we consider LTV-variance and the demand-side contribution to mortgage market variability, three stylized regimes is considered.

The paper finds an intuitive ranking of the optimal LTV-ratios across regimes, and the optimal LTV-ratio peaks during a housing boom. When, however, monetary policy ignores asset inflation the demand-side contribution to market variability is highest during normal market conditions. Hence, there is a potentially hump-shaped relation between the risk exposure of individual mortgagors and the demand-side contribution to mortgage market variability.

The paper finds a potentially hump-shaped relation between the risk exposure of individual mortgagors and the demand-side contribution to mortgage market variability, which, to the best of our knowledge, is novel. The paper shows how macro-prudential and monetary policy are complementary tolls for preserving financial stability.

The purpose of this paper is to highlight the importance of home equity and the interplay between market segments for housing market developments. The intention is to show that it is not only the aggregate equity gain but also the distribution of equity gains between segments that matter for how shocks to income impact house prices.

The paper sets out a linear housing market model with three segments. Households trade up a housing ladder and link the three segments for owner-occupied housing. The up-trading is equity-induced. An expression for the house price index, which is related to the market segment prices both directly through the segment size and indirectly through a segment position on the housing ladder is derived. The author considers the price effects of shocks to income in four housing market regimes.

The heterogeneous housing market model shows how the interplay between segments impacts housing markets. When considering shocks to income, short-run deviations in the price-to-income (PTI) ratio compared to their long-run equilibrium due to equity-induced up-trading were found. The extent of PTI overshooting is related to the intensity of equity-induced up-trading between different segments. The market structure necessary to eliminate such overshooting is contingent on the distribution of equity gains between segments. Finally, the paper shows how the price effects of macroprudential interventions might be non-negligible when indirect effects are taken into account.

The linear housing market model with three market segments introduces a framework where the intensity of equity-induced up-trading in different market segments can be analyzed. This distributional aspect is, to the best of the author's knowledge, novel. The context-specific relation between housing market structure, equity-induced up-trading and short-run deviations in the PTI ratio provides a foundation for future research.

The purpose of this paper is to outline and examine the growing corpus of housing rights and assess their relevance and applicability to complex contemporary housing systems across the world.

The paper sets out the principal instruments and commentaries on housing rights developed by the United Nations, regional and other bodies. It assesses their relevance in the context of contemporary analysis of housing systems, organized and directed by networks of legal and other professionals within particular domains.

Housing rights instruments are accepted by all States across the world at the level of international law, national constitutions and laws. The findings suggest that there are significant gaps in the international law conception and framework of housing rights, and indeed, human rights generally, which create major obstacles for the effective implementation of these rights. There is a preoccupation with one element of housing systems, that of subsidized or social housing. However, effective housing rights implementation requires application at meso‐, micro‐ and macro‐levels of modern, dynamic housing systems as a whole. Epistemic communities of professionals develop and shape housing law and policy within these domains. The housing rights paradigm must be further fashioned for effective translation into contemporary housing systems.

The development of housing rights precedents, both within international and national law, is leading to a wide and diffuse corpus of legislation and case law. More research is needed on specific examples of effective coupling between housing rights and elements of housing systems.

This paper offers housing policy makers and lawyers an avenue into the extensive jurisprudence and writings on housing rights, which will inevitably become part of the lexicon of housing law across the world. It also highlights the limitations of housing rights implementation, but offers some new perspectives on more effective application of these rights.

Greece, Ireland, Portugal and Spain have been in the spotlight of the recent economic crisis in Europe. With their economy strongly reliant on the construction industry, these countries have become widely exposed to the downturn in the property sector. This paper aims to examine residential property bubble dynamics in the period from 2003 to 2014 and investigate the role of financing conditions in the formation of these bubbles.

Building on the present value model in conjunction with the rational bubble assumption, the study applies the discounted cash flow (DCF) approach and applies weighted average cost of capital (WACC) to capture real estate bubble dynamics in the four countries. Reduced form vector autoregression models are used to examine the relationship between financing conditions and the bubble indicator.

The bubble indicator suggests that Spain and Ireland experienced a large rise in the bubble relative to moderate increases in Portugal and Greece in the period from 2003 up to the collapse in 2008. Our findings from the empirical analysis indicate that central bank policy shifts that impact interest rates and lending volumes on the domestic level have a significant and leading effect on the formation of residential property bubbles.

Only little research on real estate bubbles takes financial leverage into account. This paper bridges this gap by applying the WACC in the DCF model to identify real estate bubbles. While using a distinct bubble indicator, this analysis provides new insights into the linkage between financing conditions and real estate bubbles.

Emerging states confront staggering shortages in adequate housing stock. In response, governments have sought various supply-based solutions to mitigate growing housing deficits. While many of these mass housing efforts have not produced the desired outcome, the Republic of Korea’s Two Million Housing Drive (TMHD) was a comparatively successful intervention with its implementation from 1988 to 1992. The five-year initiative exceeded its objective with the construction of over 2.1 million units – of which two-thirds were built by the private sector. The purpose of this study is to analyse Korea’s relatively effective supply-based affordable housing approach and then extrapolate best practices and lessons learned with applications for real estate markets in the developing world. Comparative understanding of the TMHD can help promote greater access to adequate housing in the developing world, especially for the many who continue to live in impoverished conditions.

The research uses content-based and quantitative methods to analyze the case of the TMHD in Korea toward informing improvements in corresponding supply-based housing policies and programs in developing states.

While there were challenges with the TMHD, the program repositioned Korea’s urban housing market with greater access to affordable housing in cities for the lower-income and vulnerable. The TMHD enabled the subsequent effectiveness of demand-based housing policies.

There are research limitations in fully understanding the complex relationships between mass housing programs, economic growth and government policies. The abductive reasoning used in this case study enables in-depth analysis of the TMHD with generalizable inferences for middle-range theories with applications for emerging markets.

The experience of the TMHD can promote policy harmonization by helping optimize corresponding mass housing efforts in the developing world with the potential to similarly close quantitative housing deficits and expand access to adequate housing for lower-income and vulnerable households.

Deeper understanding of the TMHD can lead to reforms of other mass housing initiatives in emerging markets to make adequate housing more accessible and economical for the benefit of underserved segments of society.

The Korean experience with the TMHD can inform the optimization of other similar large-scale policies and programs seeking to sustainably overcome shortfalls in adequate housing that have become all too common in the developing world.

The purpose of this paper is to re‐appraise the role of the private renting in the housing system drawing on a review of public policies toward the sector in six countries. It re‐examines the adequacy of explanations about tenurial “competition” and the dynamics of tenurial change using a cross disciplinary perspective.

The paper critiques key explanations on the nature and type of competition between housing tenures, notably dual and unitary models, and the role of private renting in explanations of tenure dynamics. The paper also explores some of these ideas empirically by examining the changing role of the private renting relative to other tenures in a number of European countries and in Australia.

The paper expresses doubts about the potential for unitary markets to develop/continue as integrated markets because of the fundamental problems about ensuring continuing investment in the private rented sector and constraints on the maturation process, particularly where ownership of rental housing is diverse and small‐scale. The analysis suggests that housing tenures are quite fluid and with a general trend towards deregulation of private rents there is a blurring of the distinction between different types of rental systems.

The analysis suggests that it is critical to understand changes in private renting taking into account broader economic conditions, trade‐offs about housing consumption and investment, and public policy settings.

The analysis draws out theoretically, and explores empirically, the process of change in tenure relations by for the first time focusing on the role of private renting in these dynamics.

The elderly seem to be more subject to housing problems due to lower income, older age of the housing stock and lower mobility. Nonetheless, housing deprivation (HD) is commonly analysed amongst the general population. Less is known about the differences between age clusters, which seems to be a crucial issue in countries like Poland due to population ageing. What is more, the current literature usually analyses only the occurrence of HD, while also an accumulation of its indicators seems to be substantial. The aim of this article is to identify the differences in HD (its occurrence and accumulation) amongst elderly and non-elderly households and to diagnose the risk factors behind those phenomena.

The HD index was calculated and compared. Next, the multinomial logit models were used to assess risk factors of HD.

The study showed that, surprisingly, HD in Poland occurs more frequently amongst non-elderly households. The elderly ones suffered more from housing cost overburden, while non-elderly from the overpopulation. In large part, analysed risk factors had a stronger influence on housing conditions of the elderly than non-elderly households.

Social policy tools should focus on the situation of single elderly households, especially living in houses, often in villages. This group is particularly affected by problems with the quality of the dwelling and housing cost overburden.

In the paper, the occurrence and accumulation of HD indicators were analysed. The authors applied a methodological framework that is applicable to other European Union (EU) member states based on the EU Survey on Income and Living Conditions (EU-SILC) data. It is possible to continue the research study and compare different economies.

Housing policy is a key tool in urban development and has multiple functions that directly affect human welfare. This study aims to review housing policies in Iran from a critical perspective. In fact, the study and pathology of housing policies are considered in this research.

To advance this research, a quantitative (fuzzy TOPSIS and fuzzy AHP) method was used to rank the policies and the qualitative method (interview and literature review) was used for the pathology of housing policies.

The failure of policies to provide housing in Iran is decisive, but social housing policy has a relative superiority to other policies. Causes of failure of Iranian housing policies are as follows in a pathological perspective: commodification and speculative approach to housing; lake of social and physical sustainability; social stratification and classification; inconsistency with environmental conditions; non-indigenous nature of housing policies; exclusion of local institutions in the decision-making process; and the dominance of a populist perspective on housing.

This study is a comprehensive study because it has been extracted from the dissertation. By reading this study, the reader will be aware of the general conditions of the Iranian housing sector.

In addition to financial returns, German housing companies are expected to achieve social and ecological outcomes. This achievement is challenging for management, as expectations from different stakeholders are only partly apparent and often conflicting. The paper aims to discuss these issues.

This paper presents a process model that supports the management of housing companies to systematically explore, evaluate, and integrate stakeholders’ interests into the company’s strategic targets.

The integrated process model improves sustainable value creation, as stakeholders’ interests are transparent and can thus be better satisfied.

Due to the action research design, further research cycles and empirical testing with other companies are needed before findings can be generalised.

The process enables housing companies to focus on value-generating activities, to react timely to changing needs, and to improve their relationships with stakeholders. Management benefits from increased clarity and legitimacy for strategic decisions as stakeholder demands are made transparent and integrated into the strategic targets.

Compared to common participation approaches, all stakeholder groups are consulted, and their expectations are documented transparently within the suggested process model. This results in a better foundation for sustainable management planning and decisions.

This chapter draws on findings from a comparative, qualitative research project investigating the decision-making of different groups of English higher education students in central England as they graduated from a Russell group university (46 interviewees) and a Post-92 university (28 interviewees). Half of the students graduated in 2014 (lower tuition fees regime) and the other half graduated in 2015 (higher tuition fees regime). The students interviewed were sampled by socio-economic background, gender, degree subject/discipline and secondary school type. Semi-structured interviews were used to explore students’ future plans and perceptions of their future job prospects. Despite higher debt levels, the 2015 sample of Russell Group graduates from lower socio-economic backgrounds had a positive view of their labour market prospects and a high proportion had achieved either a graduate job or a place on a postgraduate course prior to graduation. This group had saved money whilst studying. The 2015 sample of Post-1992 University graduates (from both lower and average socio-economic backgrounds) were worried about their level of debt, future finances and labour market prospects. This chapter raises questions about whether a fairer university finance system, involving lower levels of debt for graduates from less advantaged backgrounds, might avoid some graduates’ transitions to adulthood being so strongly influenced by financial anxieties.