RE3HMP-Housing Markets and Policy

Module Provider: Real Estate and Planning
Number of credits: 20 [10 ECTS credits]
Level:6
Terms in which taught: Spring term module
Pre-requisites:
Non-modular pre-requisites:
Co-requisites:
Modules excluded:
Current from: 2023/4

Module Convenor: Dr Chris Foye
Email: chris.foye@henley.reading.ac.uk

Type of module:

Summary module description:

This module will provide students with an understanding of how housing markets operate in practice, incorporating both supply-side (e.g. housebuilding industry) and demand-side (e.g. mortgage markets) factors. Students will be able assess the role of government policy is shaping housing markets, and the historical relationship between housing markets and an array of economic, financial, social and environmental outcomes.ÌýÌý

This module is delivered at the °ÄÃÅÁùºÏ²Ê¿ª½±¼Ç¼ only.Ìý

Aims:

Housing has always been a fundamental basis for human life. Recently though, it has also grown to become the world’s largest asset class, powered by three decades of rapid global house price inflation. What happens in housing markets therefore affects almost everything; from financial market stability, to wealth inequalities; from national productivity, to rates of child- birth. Ìý

This module aims to provide students with an understanding of why global, national and local housing markets operate as they do, and the implications this has for economies and societies more generally. It also aims to provide students with an understanding of how different types of policy – town planning, fiscal, monetary, etc. –shape housing markets.Ìý

Taking a historical approach, the module explores the evolution of global housing markets over the last century, applying economic theory to understand the key supply and demand-side determinants of house prices, rents and affordability. It explores the growing role of mortgage finance, the relationship between housing markets and the macro-economy, and the recent growth of institutional investment in housing as an asset class. It highlights the distinct features of housing and land markets which make them susceptible to market failure, and discusses the various ways in which the state can intervene to potentially address these market failures. Ìý

Assessable learning outcomes:

By the end of the module, it is expected that students will be able to:Ìý

• Apply economic theory to housing market analysis;Ìý


• Discuss the distinct features of land and housing markets, and analyse the implications for policy;Ìý


• Discuss the supply-side and demand-side drivers of housing markets, including the (historical) role of mortgage finance, investment and the planning system;Ìý


• Analyse the (historical) relationship between housing markets and the broader political-economic context at a local, regional, national and international scale.Ìý

Additional outcomes:

The module will aid students in developing a thorough understanding of the primary factors influencing the behaviour of housing markets and their broader economic and social importance. The module will also enhance students’ quantitative and qualitative analytical skills.

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Outline content:

• Key historical trends in global housing and land marketsÌý


• Special characteristics of housing and land markets Ìý


• Supply and demand-side determinants of house prices and rentsÌý


• Analysing local and regional housing markets


• Housing finance and the growing role of mortgage marketsÌý


• Relationship between housing markets and the macro-economyÌý


• Housing tenure choices; the decline of home-ownership; and the rise of private rentingÌý


• Institutional investment in residential real estate as an asset classÌý


• Limits to housing supply, including the role of landowners, the housebuilding industry, planning systems and politicsÌý


• Residential real estate and climate changeÌý


• Comparing international housing markets and housing systemsÌý

Global context:

Whilst the module focuses on the UK more than any other country, it draws on evidence from across the world, and applies economic theory that has international relevance.

Brief description of teaching and learning methods:

Students are advised to watch online screencasts before lectures (listed as 'other' in contact hours table). The interactive lectures are then used to develop and apply understanding of topic.ÌýÌý

Summative assessment- Examinations:

Summative assessment- Coursework and in-class tests:

This will be a 3,500 word essay addressing one of five pre-set questions. This will be submitted in the first week of the summer term.Ìý

Formative assessment methods:

The module assessment will comprise one assignment. Before the end of the module, students will be invited to submit a one-page strategy, summarising how they plan to address the essay question. They will receive short written feedback on this. They will also be invited to take part in a reading group where they discuss a reading that is relevant to their chosen assignment question.ÌýÌý

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Penalties for late submission:

The Support Centres will apply the following penalties for work submitted late:Ìý

• where the piece of work is submitted after the original deadline (or any formally agreed extension to the deadline): 10% of the total marks available for that piece of work will be deducted from the mark for each working day (or part thereof) following the deadline up to a total of five working days;Ìý


• where the piece of work is submitted more than five working days after the original deadline (or any formally agreed extension to the deadline): a mark of zero will be recorded.Ìý

The University policy statement on penalties for late submission can be found at:

You are strongly advised to ensure that coursework is submitted by the relevant deadline. You should note that it is advisable to submit work in an unfinished state rather than to fail to submit any work.Ìý

Assessment requirements for a pass:

The pass-mark for this module is 40%.Ìý

Reassessment arrangements:

Reassessment will be by the same method as for the module’s original assessment requirements, subject to variation by the Examination Board where appropriate.

Additional Costs (specified where applicable):

Last updated: 30 March 2023