On a number of indicators including household: dwelling ratios; vacancy rates and price levels there is evidence of chronic oversupply within the private housing market in inner Liverpool. There is also evidence of an oversupply of housing land. This paper examines the causes of oversupply in both the housing and housing land markets; the ways in which it manifests itself within the local housing market and the consequences for different sectors of the local housing market. The Unitary Development Plan provides for more housing land than required by Regional Planning Guidance. In addition the market is making available for housing development land an buildings that were formerly in industrial and commercial uses. In consequence, there is a tendency for the price of housing land to be reduced and for the City Planning Department to be in a relative weak negotiating position vis a vis potential developers. With regard to the oversupply of housing, whilst speculative housebuilders appear to be able to maintain demand for new private housing through product differentiation, oversupply is becoming concentrated in the older existing housing stock in less favoured locations. In the market sectors where the highest level of oversupply exists, prices are in relative decline and investment in repair and maintenance is inadequate. Based on this analysis the paper goes on to offer some comments about current housing policies and their likely outcomes. The quantitative empirical content of the paper is based on data on housing activity supplied by the City Council; data on housing and land price changes from local sources. This is supported with qualitative information obtain through interviews with local estate agents, developers and others.

This item is no longer available.