House building, profits and social efficiency in Sweden and Britain

Abstract

Abstract The paper examines why the housing sector in Britain performs so badly in producing housing. Completion rates are decreasing, dwelling quality is getting worse, while both construction costs and consumer costs are increasing. It does this through discussion of alternative routes to profitability in house building, supported by a comparative analysis of two contrasting cases: Britain and Sweden. In Britain land development gains and speculative extra profits are significant profit sources for house‐builders. Making profits through building itself is neglected; the concomitant is a fragmented labour process, loss of scale economies, low capitalisation, inadequate technical innovation and stagnant labour productivity. In Sweden house‐builders do not have easy access to land development gains or extra profits. Moreover, they are faced by a well organised and well paid labour force. They are pushed onto the road of making profit through increasing labour productivity and through product improvement. T...