Owner-Occupation at the Margin?: Tenure Choice among Public Sector Tenants since 1980

Abstract

In this paper we examine tenure decisions of public sector tenants following the Housing Act of 1980 which gave tenants the right to buy their property and a substantial discount on the purchase price. Tenure choice is found to be determined by the household budget constraint, life-cycle characteristics and the quality of both the accommodation and the match between the household and the property, and is in many respects comparable with tenure choice in the private sector. As such, tenure transfers under the "right to buy" initiative are efficient, undertaken by public sector tenants on the margin of owner-occupation. Copyright 1999 by Blackwell Publishers Ltd and The Victoria University of Manchester