Housing: The Phenomenon of Gentrification

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Table of Contents

Introduction
Conclusion
References

Introduction

It is essential to note that the authors of the article focus on the increase in the private rented sector in London. They consider this issue in the framework of changing social structure and gentrification, and the authors examine the period 2001-2011. The article reviews the existing literature and initially finds that during this period, there was a decline in the size of the working class and an expansion of the middle class in London. However, later, based on the census, it was established that the number of working-class residents did not change. Consequently, there was no mass movement of population or change of professions, but there was a phenomenon of gentrification in the suburbs of London. Thus, the authors conducted a study to identify social changes in the suburbs of London that affected property and land tenure. It was found that national government measures such as changes in housing benefits and local government programs that replace existing public housing with mixed-tenure properties have affected the real estate market.

The article stated that there had been a significant change in land tenure because, traditionally, homeowners lived in the suburbs. However, the United Kingdom level trend indicates that over the last 25 years, the private rented sector has returned to popularity. Thus, this has raised the number of persons renting personal property by 1.7 million. The development of this type of household in London has been influenced by the Buy To Let mortgage, which provides a down payment if the property is subsequently put on the privately rented market. Accordingly, there were more offers of rental housing, which stimulated gentrification.

Paccoud and Mace (2018) also investigated the economic causes of gentrification. They established that low rent variability plays an important role. Therefore, the expansion of the private rental sector occurred in more urban, central, and disadvantaged regions. Accordingly, individuals chose to live in rented houses because of the economic benefits. Significantly, the way people lived differed between Inner and Outer London. First, in areas of London with high house prices, most households live in the rented sector. Secondly, there has been a concentration of these households in the private rented sector in Inner London. The article “Tenure change in London’s suburbs: Spreading gentrification or suburban upscaling?” also examines the city’s dwellers who created gentrification because they were looking for special places to live. Their critical criteria were centrality, accessibility, and distinctive architecture, which is why private rental housing proposals in the suburbs of London have gained considerable popularity.

Consequently, these trends differed significantly from the way home ownership was experienced before 2001. A significant role in these changes was played by the landscape and types of housing offered by owners in the suburbs of London. For example, semi-detached and terraced houses were available for a comparatively minor amount of money, especially in areas with distinctive architecture. The authors note that socio-economic groups were displaced in the suburbs of London. The article does not establish the reasons, but there is a possibility that the departure of indigenous people is related to gentrification, but this statement requires further research.

As a result, a significant focus of the article’s authors is on the tenure variable in the suburbs of London, which is related to economic and social reasons. They mentioned that the private housing sector in Outer and Inner London has developed due to a specific migration of residents in the inner city. Thus, the phenomenon of gentrification has arisen, according to which landlords receive rents and tenants of houses can change their place of residence depending on specific needs.

Van Gent et al. (2018), in their article, assessed the socio-spatial impacts of the controversial Act on Extraordinary Measures for Urban Problems. This law has significant implications for local housing policy. It is important to note that the law only influences selected residential areas and population groups. The authors analyzed that the law does not include people without permanent residence and income. Thus, they identified a group of low-income residents who are forced to search for a place to live in other areas where there is affordable housing. This group’s affordable private rental housing is available in relatively disadvantaged and declining urban areas. The authors also indicate that there have been changes in the housing market structure and the prolongation or demolition of affordable homes for these individuals. The article states that the law has a negative effect on the socio-economic status of already unprotected categories of the population in the housing market. It is essential to stress that the selected districts cannot demonstrate significant changes in the social composition of the population. Thus, the law does not justify the set goals, using not always-correct means that worsen the situation of vulnerable individuals.

Van Gent et al. (2018) argue that the law influenced urban policy and the social mixing of the population by changing the housing market. This can be explained by the fact that there has been an expansion of moves of citizens, which contributes to the social renewal of households, but not to changes in their living conditions. The author suggests that the implemented strategy does not function from the literature analysis. This explains the creation of only negative attributes. At the same time, they indicate that the law in the field of housing services has minor positive features. Nevertheless, they are overshadowed by concomitant developments, such as the cessation of renovation funds and other budget cuts. This explains why the law does not contribute to developing areas in need.

In the article, the authors mention that the law’s negative consequences outweigh the positive ones. They surveyed the population and found that the law halts the population’s housing aspirations. In contrast to their own opinion, the authors analyze the government’s statement, which states that changes in the social composition of the population in the designated areas confirm that the policy is on the correct course. Significantly, local authorities also support this statement. They note that the possibility of excluding certain population groups from the districts allows for enhancing other residents’ public safety and living standards. The provision of the law based on police records of crimes and anti-social behavior, exclusion from the community is possible, contributes to more significant migration of specific population categories.

The article analyzes other states’ practices, similar to the Dutch ones. Van Gent et al. (2018) suggest that the law may influence European housing policy. Therefore, such a strategy offers changes without significant and long-term investments. However, the disadvantage of this policy is the absence of economic and social positive effects that the population can immediately feel. To validate the evaluation of the law, the authors conducted interviews, demonstrating that local authorities use the law and recognize its value. Additionally, Van Gent et al. (2018) note that the law exacerbates social inequalities and sectarianism among the population. They suggest that the costs associated with restricting freedom of movement may not lead to social improvement.

Mustafa et al. (2018) examine residential development as a prerequisite for formulating more efficient land use policies. The authors indicate the significant importance of densification policies for the optimal use of territories. The article “Addressing the determinants of built-up expansion and densification processes at the regional scale” examined the factors that control the processes of expansion and densification in Wallonia (Belgium). Mustafa et al. (2018) applied a multivariate logistic regression-based model. They distinguished three classes of building density to find the relationship between building expansion and the factors that stimulate it. The article pays considerable attention to the main elements of building density, which characterizes the increase of the city territory. The authors highlighted such factors as spacious layout, wide roads, and established transport networks between districts and indicated that they are the main ones for implementing low and medium-complexity development in the city of Wallonia. The article analyzed the available literature and found that these factors have been essential for many years. However, Mustafa et al. (2018) stated that in recent years there has been an active expansion of the city, and the density of development is growing.

This is because the number of residents who need new places to live has doubled. This has caused a gradual transition in Wallonia from the densification of buildings. Meanwhile, they note that the construction of new houses has not reached a significant scale and requires further planning. Currently, there is no meaningful connection with railway stations; the buildings are not transit-oriented. This is contrary to the principle that a high density of buildings exists around railway stations in cities.

The authors also found that the authorities and private developers choose locations for housing construction close to large cities, considering the contribution to sustainable urban expansion and economic benefits. However, this is not the critical factor in densification processes because developers also pay attention to the area’s characteristics. That is, in Wallonia, local factors mainly determine the development of buildings. Thus, zoning zones are considered and specified in the control plans. This is a significant drawback of this land use system because the plans were prepared in the 1970s and 1980s and need to be renewed. Mustafa et al. (2018) suggested improving land use and zoning plans. The article states that a significant amount of available land can be used for housing.

Accordingly, the city authorities need to develop mechanisms for granting ownership of land plots to companies or people who plan to build. It is also imperative to simplify the possibility of applying for building permits. At the same time, the authorities should review the distribution of urban zones and identify places for dense construction to respond to the needs of residents. The authors also recommend supporting construction companies planning to build in areas needing densification. Hence, this study’s results allow the establishment of three classes of densities, specifically low, medium, and high densities. Additionally, the authors propose an action plan for public authorities who want to explore the relationships between the spatial factors that lead to dense housing development and the methods of promoting densification. Therefore, the article concludes that Wallonia needs to review its land use and development policies.

The article explores the patterns of home ownership demonstrated by immigrants. Acolin (2019) attempts to establish the existence of differences between immigrants and natives of France in the context of housing policy. The primary database for the author was a survey in which 21,761 people participated, the sample included foreigners, their children, and first and second-generation immigrants. The value of this survey is that it allowed receiving information about this population category because French statistics lack data on immigrants. The survey results indicated that immigrants rarely buy their housing in France. However, the second generation of immigrants purchases housing in France more often than the French. Accordingly, the article’s author notes that the non-indigenous population acquires better working conditions. Thus, they integrate into the housing market through time, not through a general stratification of housing trajectories.

The article states that immigrants and the second generation are more likely to be tenants of social housing. They tend to live in cities and rent small apartments. In such buildings, many apartments are rented, and this creates the effect of overpopulation. Due to economic and financial difficulties, immigrants partly cannot afford to rent private bunkers in rural areas or suburbs. It is worth noting that immigrants do not live in developed areas because the cost of buying or renting housing is higher there. Acolin (2019) uses integration theory to explain the changing position of immigrants in the housing market. According to this theory, characteristics such as education, income, and employment have a significant influence on closing the homeownership gap between immigrants, children of immigrants, and the rest of the population. The author demonstrated the connection between improved living standards and higher wages for immigrants. This explains that immigrants raised in France received better education, more social guarantees, and high-paying jobs, and were enabled to buy their housing.

It is important to note that the stratification approach is relevant considering the persistence of significant differences between the second generation whose parents are immigrants from DOM, Sub-Saharan Africa, and Turkey. Such attention to this population category is explained by the fact that, generally, about one-fifth of the inhabitants of France are from these countries. Such a large number of immigrants has prompted a debate on whether European states can ensure the full integration of immigrants into European standards of living. In France, several programs have been created that aim to demolish existing housing complexes and replace them with mixed-income developments that include a proportion of homeowners. In addition, the French government has created subsidized savings accounts to support homeownership as a desirable form of tenure. This aims to facilitate access to mortgage credit and zero-interest loans for first-time homebuyers. The article states that such programs are also available for immigrants and aim to enhance their ability to purchase their own homes.

It is important to note, another focus of this paper, that the housing integration of the second generation can be studied as one of the dimensions in the segmented assimilation structure. In this dimension, it appears that children of immigrants in France have housing conditions that correspond to their social status, which is higher than that of their parents. However, the survey data demonstrate heterogeneity among immigrants of different origins. In order to enhance the situation in the housing market for immigrants, the author proposes to identify potential actions that could contribute to the further integration of immigrants and their children in terms of housing outcomes.

Conclusion

The Importance of the Topic

The problem of providing citizens with affordable and decent housing in any country is one of the most crucial tasks of socioeconomic policy. Therefore, the level at which this problem is solved directly reflects the government’s concern for the well-being of individuals and society. Americans like long-term loans, which is why the mortgage lending program was widely developed in the country to provide Americans with housing (Ruonavaara, 2018). In addition to the spread of mortgages, however, there has been an explosion in the number of homeless individuals forced to use the services of elderly parents or sheltered housing. In Australia, 65% of housing is owned, and more than 1.1 million Australian families have housing difficulties, meaning they spend more than 30% of their income on the house over their heads (Ruonavaara, 2018, p.179). 66% are commercial tenants, only 5% rent social housing, and 26% are home buyers (Ruonavaara, 2018, p.179). There is a shortage of about half a million units of affordable housing in the rental sector. Thus, housing requires special consideration by the governments of different states.

Key Findings

It is significant to note that the article by Paccoud and Mace (2018) discusses the phenomenon of gentrification and the spread of private renting in the suburbs of London. The authors indicated that such a change is associated with economic and social reasons. At the same time, they assessed the influence of gentrification. They mentioned that people change their place of residence not only because of lower rents but also because of the culture, architecture, and other arts they can see in the new location. It is interesting to observe that Mustafa et al. (2018) also used the population agglomeration of Wallonia (Belgium), but they investigated an entirely different issue. The authors focused on dense housing development and identified problems. In contrast to the previous article, the article by Mustafa et al. (2018) is advisory and aims to demonstrate the importance of simplifying land titling.

Van Gent et al. (2018) evaluated the socio-spatial impacts of the controversial “Act on Extraordinary Measures for Urban Problems”. They noted that the exclusion of a specific population category based on established characteristics contributes to the development of discrimination. However, such actions of government officials increase migration and social problems. In contrast, Acolin (2019) studied the lives of first and second-generation immigrants in France. Moreover, the main issue of the article was focused on their ability to rent their housing. Acolin (2019) found that first-generation immigrants live in poor areas and rental housing. Second-generation immigrants can afford to buy houses due to the improved economic situation. Thus, this article also explores the positive impact of the French government and helping immigrants to enable them to have a European standard of living. This article significantly differs from Van Gent et al. (2018) regarding assistance to people from the lower strata of the population. This is because Van Gent et al. (2018) evaluated a law contributing to such groups’ displacement from the region.

I suppose that all the articles considered the actual problems in the field of housing. Interestingly, the authors studied not homogeneous issues in different countries. I support Van Gent et al. (2018), who believe that the law contributes to discrimination. Acolin (2019) describes the measures taken by the French government to help immigrants buy their housing. It appears that this approach is better and will help eliminate social inequality. It is worth noting that I agree with the recommendations of Mustafa et al. (2018). In addition, I consider that Paccoud and Mace (2018) have explored the relevant issue of gentrification. Therefore, their research should be continued on the example of other cities.

References

Acolin, A. (2019). Housing trajectories of immigrants and their children in France: Between integration and stratification. Urban Studies, 56(10), 2021-2039. Web.

Mustafa, A., Van Rompaey, A., Cools, M., Saadi, I., & Teller, J. (2018). Addressing the determinants of built-up expansion and densification processes at the regional scale. Urban Studies, 55(15), 3279-3298. Web.

Paccoud, A., & Mace, A. (2018). Tenure change in London’s suburbs: Spreading gentrification or suburban upscaling?. Urban Studies, 55(6), 1313-1328. Web.

Ruonavaara, H. (2018). Theory of housing, from housing, about housing. Housing, Theory and Society, 35(2), 178-192. Web.

Van Gent, W., Hochstenbach, C., & Uitermark, J. (2018). Exclusion as urban policy: The Dutch “act on extraordinary measures for urban problems”. Urban Studies, 55(11), 2337-2353. Web.

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