Abstract
Since 1990 the UK housing market has been in recession, with protracted periods of nominal house price falls. While demand-side factors are important in explaining this phenomenon, this article examines the responses of the major institutions to the recession, covering the period up to the autumn of 1995. The institutions examined are lenders, insurance companies and the government (including regulators). The analysis identifies 15 impacts resulting from their behaviour. Of these, eight were pro-cyclical, five were counter-cyclical and two were broadly neutral. The key role of the government in arranging counter-cyclical behaviour is identified, although this should be balanced against other policy objectives, such as the removal of distortions from the housing market.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
