Economic Developments: Housing Market by 1992 Flashcards
Name 2 Acts that caused the 1980s Housing Boom
1980 Housing Act, 1988 Housing Act
What did the 1980 Housing Act allow council tenants to do?
Buy their houses
What did the 1988 Housing Act allow landlords to do?
Buy council houses and rent them out with no rent controls
What did many council tenants do in order to buy their homes?
Took out loans
What were council tenants unable to do with their loans when the 1990 recession occurred?
Pay back the loans
What happened to many people’s properties due to the 1990-2 recession?
Their houses went into negative equity
What does negative equity mean?
Negative value
How much did house prices go up from 1980 to 1989?
They tripled
How many houses were in negative equity in January 1992?
300,000
How many houses were in negative equity by December 1992?
900,000
Which group of voters were heavily impacted by the 1990-2 recession?
Conservative voters
What is significant about the Conservatives winning the 1992 election despite the recession?
It showed people lacked confidence in Labour improving the conditions
