This paper is the 5th in the Department for Communities and Local Government economics papers series.
Regional economic disparities are a long-standing feature of the UK economy, and regional house price differences or planning policy are often cited as contributing factors.
Housing is likely to contribute to regional disparities, but there is a danger of blaming housing for more deep-seated social issues.
Although policy undoubtedly is important, this paper points to the more subtle influences of housing markets in economic outcomes. In particular, the role of housing in influencing human and physical capital stocks is examined. While more research is required, this report argues that history matters and that there are no quick fixes.