Aspects of Structural Change in Speculative Housing Production: A Case Study in Merseyside

Abstract

In this paper I describe, and attempt to provide explanations for, changes in the structure of speculative-housing production in Wirral, in Merseyside, from 1971 to 1985. I begin with a description of the changing structure of the industry nationally, noting particularly the trend towards seller concentration. Differences between these national trends and those pertaining to Wirral are reported, including the increase in the market dominance of local small firms. I then consider local variations in market characteristics and those in production which may account for these differences. I conclude that this divergence is most probably explained by a relative decline in local housing demand and by changes in the local land market, both of which make investment in the area less attractive to large national housebuilding firms.

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