The Impact of Homeownership and Capital Gains upon Class and Consumption Sectors

The debate about the impact of homeownership and capital gains upon class and consumption-sector formation is reviewed, from the work of Rex and Moore in 1967 to that of Saunders and Harris in 1988. A theme noted is that homeownership is seen as a base for class membership in the earlier work but by the most recent work this has shifted to a base for the formation of consumption sectors. Much of the debate has been centred upon the English case and the rise in homeownership over the postwar years. A wider comparative perspective is required for further elaboration within this debate. The main critique attempted within this paper is one developed around the empirical debate regarding returns to homeowners and whether these result in a redistribution or a concentration of wealth, and consequently whether homeownership serves to create a base for political and social action or whether it contributes to the present fragmenting tendencies within capitalist societies. Evidence is reviewed from Britain and New Zealand on the questions of whether real gains are made through property ownership and the author assesses the extent of variability created by such factors as the time period when the property was acquired, regional variations, the links between the property and the labour markets, household structures, and gender divisions within wealth generation and dispersal. It is concluded that homeownership constitutes a base for real accumulation but the rate and extent of this process is not an even one. The ability to gain wealth varies considerably by time, location, level of individual and family income, employment level, and household type. Consequently, the wealth generated through homeownership is a factor fragmenting rather than uniting social groups and, therefore, is unlikely in itself to be a basis of political mobilisation.