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English Wikipedia
Financialization, real estate and COVID-19 in the UK
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Blakeley G
Community Dev J
2020[Oct]; ä (ä): ä PMIDC7665346
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In the UK, financialization has transformed many areas of the economy, including
the housing market. The deregulation of financial markets that took place from
the 1980s onwards, combined with the privatization of social housing, has
transformed UK real estate from an ordinary good, insulated to some extent from
consumer and financial markets, into a valuable financial asset. The
financialization of real estate has had a largely negative impact on the UK?s
housing market, the wider economy and individual communities; wealth inequality,
financial instability, gentrification and homelessness have all increased as the
role of the financial sector in UK property has increased. The financial crisis
only accelerated many of these trends as distressed real estate was bought up by
investors in its wake, and as loose monetary policy pushed up house prices in the
period after the crisis. The COVID-19 pandemic is only likely to exacerbate these
issues; the UK is sleepwalking into a potential evictions crisis, and ongoing
loose monetary policy is likely to prevent a significant and necessary correction
in house prices over the long term.