Abstract
Regional Studies. Housing market activity and firm formation are both positively correlated with the business cycle, and the levels of mortgage lending to business owners and funding of small firms have fallen in the UK since 2008. This paper explores a neglected, causal linkage between housing assets and small business investment and the economy and, in particular, draws attention to the recent reduction in small business investment consequent to a reduced capacity of entrepreneurs to withdraw or leverage housing equity. It draws on secondary data for the UK and interviews with key policy and practice stakeholders for both housing and enterprise.
| Translated title of the contribution | Housing Assets and Small Business Investment: Exploring Links for Theory and Policy |
|---|---|
| Original language | French |
| Pages (from-to) | 744-757 |
| Number of pages | 14 |
| Journal | Regional Studies |
| Volume | 48 |
| Issue number | 4 |
| DOIs | |
| Publication status | Published - Apr 2014 |
Bibliographical note
Funding Information:Acknowledgement – This research was supported by an Early Career Grant to Darja Reuschke from the Regional Studies Association. The authors thank Bob Pannell of the Council of Mortgage Lenders, Andrew Gall of the Building Societies Association, and Lorna O’Brien of the Financial Conduct Authority for analysing their mortgage data by employment status for use in this paper. The authors also thank all interview partners for providing useful information on enterprise and mortgage practices. The authors are also grateful to Colin Mason and two anonymous referees for useful comments and suggestions.
Keywords
- Equity withdrawal
- Financial crisis
- Housing assets
- Mortgage market
- Small firms
ASJC Scopus subject areas
- General Environmental Science
- General Social Sciences