Contributions of path-dependency and social capital drivers to housing tenure transitions in Britain

Abstract

Purpose The purpose of this paper is to investigate the contributions of path-dependency and some contextual social capital drivers to housing tenure transitions in Britain. Different situations have continued to shape young adults’ housing tenure decisions. However, very little research has been done to investigate the impact of some social capital drivers, such as neighbourhood integration and strength of parental intimacy, on housing tenure decisions in Britain. Design/methodology/approach This paper is carried out by tracking a sample of young adults in the British Household Panel Survey from 1991 to 2015 until they make tenure transition. Multinomial fixed-effects logistic regression of time to tenure transition was useful for the models, incorporating established economic and demographic drivers and with the inclusion of contextual social capital variables. Findings The inclusion of the number of years of parental home ownership experience tends to improve on previous path-dependency indicators of tenure transition. With additional years of parental home ownership experience, British young adults are more likely to remain or return to parental housing. Also, individuals that exchange better with their neighbours are less likely to switch tenure. On the other hand, regularity of contact with parents showed a positive relationship with home ownership or parental housing transitions. Originality/value To the best of the author’s knowledge, no study has explored the impact of the duration of socialisation in parental housing and also the impact of some other social capital drivers, such as neighbourhood integration and strength of parental intimacy, on housing tenure decisions among young adults. Hence, it is believed that the findings will further assist policymakers in understanding the dimensions and drivers of tenure shifts.

Relationships between young adults’ housing tenure, elements of perceived job security and social capital in Britain

“…Proxies representing social capital in the BHPS are adopted from Aguda (2019). These provide information on the tendency of becoming integrated into an area through bonds formed with neighbours or neighbourhoods (Leviten- Reid and Matthew (2017); identification with meaningful socio-economic groups and networks (Lin, 2017; Brady, 2015); and relationships formed with family or friends (Brook, 2005;Brady, 2015).…”

“…6 Those in private renting are independent heads of households or their partners. (Aguda, 2019) 7 . The sample data resulted in 31,126 observations and 5479 individuals who are yet to become a homeowner at their first survey participation (appendix A).…”

“…Concerning housing tenure decisions, it could result from bonds formed through integration in an area and with family or links formed with individuals within local organisations they identify with (Aguda, 2019). However, social capital effects may not be independent of the current economic conditions affecting young people's important decision.…”

“…Literature has attributed these trends mainly to demographic, economic, and affordability conditions. Nevertheless, additional explanations of tenure shifts, through socio-psychological contexts, have emerged in literature in recent times (See Aguda, 2019;Ben-Shahar, 2007;Drew, 2014 andReid, 2013).…”

Neighbourhood Effects, Social Capital and Young Adults’ Homeownership Outcomes in the United Kingdom

“…Tenure path-dependencies have come up in recent literature as the additional influence of tenure, as demonstrated in Aguda (2019); Coulter (2018) and Wagner (2014). Different dimensions of the connection between young people's housing tenure outcomes and their parental tenure are revealed in these studies.…”