Life on the edge

a perspective on precarious home ownership in Australia and the UK

Journal article (2015)

Authors

G.A. Wood OLD Housing Systems , Royal Melbourne Institute of Technology University, Curtin University
S.J. Smith Royal Melbourne Institute of Technology University, University of Cambridge
M Cigdem Royal Melbourne Institute of Technology University, University of Melbourne
R Ong University of Cambridge, Royal Melbourne Institute of Technology University
Research Group
OLD Housing Systems
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Published Date

2015

Language

English

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Research Group

OLD Housing Systems

Abstract

This paper focuses on two countries with debt-funded ownership-centred housing systems, Australia and the UK. Financially, there are similarities between these two societies, which have relatively ‘complete’, reasonably well-regulated mortgage markets, had limited exposure to the extremes of subprime, and have been pre-occupied with (and reasonably successful in) restoring ‘business as usual’ in housing and mortgage markets. Institutionally, however, the countries differ from each other, notably with respect to the size and function of the rented sectors. By modelling matched datasets from panel surveys in Australia and the UK, this paper considers how home-buying households in these financially similar, institutionally distinct, countries coped with the ups and downs of housing and mortgage markets in the first decade of the millennium. To address this, we focus on the edges of ownership: that once-stark boundary between owning and renting whose character is often taken for granted, yet which contains important signals about the functioning of housing systems, their link to the wider economy and the well-being of home occupiers. The analysis considers in hitherto unprecedented empirical detail how, why, when, for whom and in what way the edges of ownership proved precarious in the decade to 2010.