The best housing books of 2018

Originally published as a column for Inside Housing on December 17.

As housing has risen up the political and media agendas, so the shelves are filling with books explaining where we’ve gone wrong and what we could do to put things right.

Reflecting that, and just in time for anyone wondering what to get the housing nerd in their life for Christmas, here are my three housing books of the year.

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First up is John Boughton’s indispensable history of council housing, Municipal Dreams – The Rise and Fall of Council Housing.

It’s a predictable choice and one already made by many other reviewers but it is one that is better late than never and one that will be even more worth reading next year against the background of the centenary of Homes Fit for Heroes.

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Book review: The Financialization of Housing

The Global Financial Crisis was a wake-up call to the world about the dangers posed by a toxic mix of finance and housing, one that has still not been properly heeded.

The mortgage-backed securities, collaterialised debt obligations and other financial instruments that financed the expansion of sub-prime and predatory lending were the result of a wave of innovation by a finance industry that had been deregulated over the previous 20 years. Britain marked the 30th anniversary of the Big Bang in the City last month but similar things happened around the developed world.

All that innovation and securitisation led to exponential increases in the amount of credit circulating within the financial system but it still needed something to be secured against. Which is where housing came in: a mortgage finance system that had been based on long-term mortgage lending funded from savings was transformed into a vehicle for the expansion of credit. And the relationship between the price of homes and the earnings of people buying them was also transformed.

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The Financializaton of Housing: A Political Economy Approach, a new book by Manuel Aalbers, is the most comprehensive attempt I’ve seen to outline this process and its consequences. It’s part of a multinational research project based at the University of Leuven in Belgium on what he calls the Real Estate/Financial Complex in 12 different countries around the world. The metaphor is a deliberate echo of the military/industrial complex and serves to emphasise the connections not just between the real estate and financial sectors but also between each of them and the state.

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