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Before and After Deregulation: Market Renting in Glasgow and Edinburgh

Centre for Housing Research and Urban Studies, University of Glasgow, 25 Bute Gardens, Glasgow G12 8RS. UK

In this paper, newspaper adverts are used to investigate the effects of the deregulation of private renting in the UK. The paper contrasts newspaper adverts in 1988 (before deregulation took force) with 1992 for the market furnished sectors of Glasgow and Edinburgh. The methodological issues of using such data are discussed, as well as the partial nature of such an analysis. It turns out that there is some limited evidence of more competitive market conditions and an expansion of supply can be inferred in Glasgow. OLS rental regressions implied significant changes in the implicit prices of the determinants of marginal rents in both cities. The paper concludes on a note of caution emerging from the absence of a sustainable supply subsidy to encourage the further development of commercial rental housing.

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