The Property Market

  • Graham Hallett


A social psychologist once chided an economist:

You say that prices are determined by supply and demand, but I know they are determined by people.1


Interest Rate House Price Land Price Land Prex Mortgage Rate 
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Select Bibliography

  1. D. Richmond, Introduction to Valuation, Macmillan, 1975.CrossRefGoogle Scholar
  2. I. H. Seeley, Building Economics, Macmillan, 1972.Google Scholar
  3. P. A. Stone, Building Economy, Pergammon, 2nd ed. 1976.Google Scholar


  1. 1.
    K. G. Boulding, Economics as a Science, McGraw Hill, 1970. p. 73.Google Scholar
  2. 2.
    A valuable statistical compilation, and a possibly complacent analysis, is given in Housing Policy; a Consultative Document H.M.S.O. Cmnd 6851, 1977. For a more critical view, see Housing, rents, cost and subsidies A. Grey et al Chartered Institute of Public Finance & Accountancy, 1978.Google Scholar
  3. 3.
    Graham Hallett, Housing and Land Policies in West Germany and Britain, Macmillan, 1977, Pt.I.Google Scholar
  4. 4.
    This appears to be what Professor Denman means by his concept of ‘proprietary land use analysis’. (D. R. Denman and S. Prodano, Land Use: An Introduction to Proprietary Land Use Analysis. Allen & Unwin, 1972).Google Scholar
  5. 5.
    The Principles of Political Economy and Taxation Chap. 2.Google Scholar
  6. 6.
    Ricardo’s emphasis on ‘differential’ rent illustrates an important point, but can be misleading. Economic rent is, more generally, based on scarcity, and can arise even when there is no ‘differential’: e.g. an island of uniform fertility, once all the land is cultivated (Stonier & Hague, A Textbook of Economic Theory p.276 ff ).This is more than an academic quibble. I have heard a surveyor of great experience argue that the traditional theory of land pricing did not apply in a heavily populated island like Britain because there was no land left which earned no rent.Google Scholar
  7. 7.
    R. F. Muth, ‘Urban Residential Land & Housing Markets’ in Issues in Urban Economics H. S. Perloff & L. Wingo Jr. (eds), Johns Hopkins Press, 1968, p. 286 ff.Google Scholar
  8. 8.
    Margaret Reid, Housing & Income University of Chicago Press, 1962.Google Scholar
  9. 9.
    Ideas have often been put forward for low start’ mortgages, in which both payments by borrowers and interest to depositors would rise over time, in line with house prices. Indeed an enterprising British finance house introduced a scheme of this type in 1972. It failed because, although ‘many people wanted to lend on these terms, no one was anxious to borrow. It is also worth pointing out that the normal repayment mortagage, combined with tax relief on mortgage, is in fact a low start’ mortgage since the proportion of interest payment (attracting tax relief) starts high and falls over the period of the mortgage.Google Scholar
  10. 10.
    Everyman’s Dictionary of Economics A. Seldon & F. G. Pennance (eds), London, 1965.Google Scholar
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    A. Marshall, Principles of Economics 8th edn., p. 432.Google Scholar
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    One study defines speculation in the sense of ‘witholding’. This brings out the point, although it is not normal usage. (Dr. W. K. Risse, Grundzüge einer Theorie des Baubodenmarktes Domus Verlag, Bonn, 1974, p. 76 fi.Google Scholar
  13. 13.
    Housing Land Availability in the South-East. The Economist Intelligence Unit and the Housing Research Foundation. HMSO 1975.Google Scholar
  14. The British Property Federation, which criticises the Community Land Act for its curtailment of the owner’s right of objection, proposes powers for over-riding an owner who has no more than 10 % of a development, in the way that the Companies Act gives powers to buy out minority shareholders. Policy for Land, 1966, 2: 6.Google Scholar
  15. 15.
    Parliamentary Debates (Commons) 1973/4. 4 April, Col. 1441.Google Scholar
  16. 16.
    Lewis Mumford, The City in History Penguin, 1966, p. 504.Google Scholar

Copyright information

© Graham Hallett 1979

Authors and Affiliations

  • Graham Hallett
    • 1
  1. 1.University CollegeCardiffUK

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