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Housing insecurity and homelessness : evidence from the UK

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Fetzer, Thiemo, Sen, Srinjoy and Souza, Pedro C. L. (2022) Housing insecurity and homelessness : evidence from the UK. Journal of the European Economic Association . jvac055. doi:10.1093/jeea/jvac055 ISSN 1542-4766. (In Press)

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Official URL: https://doi.org/10.1093/jeea/jvac055

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Abstract

Homelessness and precarious living conditions are on the rise across much of the Western world. This paper exploits quasi-exogenous variation in the affordability of rents due to a cut in rent subsidies for low income households in the United Kingdom in April 2011. Using comprehensive district-level administrative data, we show that the affordability shock caused a significant increase in: financial distress, evictions, property crimes, insecure temporary housing arrangements, statutory homelessness, and actual rough sleeping. The most notable rise in statutory homelessness is driven by families with children, lone parents, individuals with existing health conditions, and as a result of having been evicted. We estimate that the fiscal savings were low and shifted towards the local administration: savings by the central government were partially offset by increase in council spending to meet statutory obligations for homelessness.

Item Type: Journal Article
Subjects: H Social Sciences > HD Industries. Land use. Labor
H Social Sciences > HV Social pathology. Social and public welfare
Divisions: Faculty of Social Sciences > Economics
Library of Congress Subject Headings (LCSH): Housing policy -- Great Britain, Housing -- Prices -- Great Britain, Public housing -- Great Britain, Homelessness -- Great Britain, Homeless persons -- Great Britain, Rent subsidies -- Great Britain, Housing subsidies -- Great Britain
Journal or Publication Title: Journal of the European Economic Association
Publisher: Oxford University Press
ISSN: 1542-4766
Official Date: 2022
Dates:
DateEvent
2022Published
21 November 2022Available
10 June 2022Accepted
Article Number: jvac055
DOI: 10.1093/jeea/jvac055
Status: Peer Reviewed
Publication Status: In Press
Reuse Statement (publisher, data, author rights): This is a pre-copyedited, author-produced version of an article accepted for publication in Journal of the European Economic Association following peer review. The version of record [insert complete citation] is available online at: https://doi.org/10.1093/jeea/jvac055
Access rights to Published version: Restricted or Subscription Access
Date of first compliant deposit: 21 June 2022
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