Research Updates

 from the Department of Real Estate & Planning at Henley Business School, University of Reading

Publications

Ilbasmis, M., Gronwald, M. and Zhao, Y.
Diversification power of real estate market securities: the role of financial crisis and dividend policy
CESifo Working Papers, 7015 - Article link

Abstract
We use an Asymmetric DCC - GJR - GARCH model to estimate the dynamic conditional correlation at daily, weekly, and monthly frequencies. Our contribution is threefold. First, we find a that downward trend in the daily conditional correlation in the Turkish market, which is contrary to the literature, while the upward trend in the correlation of the two U.S. markets is consistent with the literature. Second, we observe that the trend in the correlation changes the direction with the 2008 Global Financial Crisis. The negative trend in Turkish market becomes positive and the positive trend in the U.S. market becomes negative after the crisis, which could indicate a structural break in the REIT market caused by the crisis. Third, we find that the dividend policy of REITs plays an important role on the dynamics of the correlation. Dividend payments by Turkish REITs decrease their conditional correlation with the Turkish stock market while no such relationship is detected in the U.S. We argue that both the relationship between dividend payments by REITs and REIT correlation with the stock index is associated with the different regulatory environment of REITs in Turkey.

Le Gouais, A., Bates, G., Callway, R. and Kwon, H.R. Montel, L., Peake-Jones, S., White, J., Hasan M.N., Koksal, C., Barnfield, A., Bondy, K. and Ayres, S.
Understanding how to create healthier places: a qualitative study exploring the compelx system of urban development decision-making.
Health & Place, 81 - Article link

Abstract
Tackling complex system challenges like creating healthy environments requires understanding priorities and structures affecting multiple actors. This qualitative study, involving 132 multi-sectoral stakeholders spanning the urban development decision-making system, explores how to influence healthier place-making. Using thematic analysis we develop themes around competing stakeholder priorities; structural ‘rules’ and influential relationships; and justifying a focus on health, requiring greater clarity and consensus around definitions of ‘healthy’ urban development. Building on the socio-ecological model we highlight how a multi-faceted approach is required for change at multiple levels in the complex system to target individual actor motivations, organisational priorities and structural ‘rules’.

Lynn, T. and Parker, G.
Underrepresented neighbourhood plan areas in Middlesbrough
Report: Kingfisher Commons, Peterborough - Article link

Summary
The research was funded by Middlesbrough Council to explore factors inhibiting take-up of neighbourhood planning in their administrative area. It is already known that the take-up of Neighbourhood Planning (NP) in England has been skewed towards more rural and parished areas. The research reported here explored barriers and issues constraining neighbourhoods from participation in Middlesbrough. The research looked at six cases in Middlesbrough where communities had embarked on NP and others where this tool had not been taken-up. The work also involved focus group discussions about barriers and opportunities and reflects on ways forward in the light of both wider existing knowledge about neighbourhood planning dynamics and the evidence collected from Middlesbrough. In total, eleven wards were represented in this research. Assumptions about prior knowledge and understanding of NP must be treated with caution. The key findings are that the neighbourhoods not participating involved in the research felt they had too little information and encouragement to participate in neighbourhood planning and there appeared a relatively undeveloped understanding of the scope and process of NP, as opposed to skills gaps within these communities. Much of what was uncovered in relation to take-up of NP in Middlesbrough resonates with existing known evidence, although fear of participation was a new feature not reported elsewhere. The principle of Neighbourhood Planning Statements as a light touch approach seemed to be greeted positively but questions about their status were also asked. Those already involved were seeing value in NDPs and were also positive about offering peer-support. The key conclusions and recommendations are set out across five themes of: information, resources, relations, shared learning, and leadership. Overall communications need to be improved, that the approach to support be more proactive and tailored to specific neighbourhood circumstances, while using existing social infrastructures.

McAllister, P. and Nase, I.
Minimum energy efficiency standards in the commercial real estate sector: a critical review of policy regimes
Journal of Cleaner Production, 393 - Article link

Abstract
Given the significance of carbon emissions from the existing building stock, this paper aims to provide an international comparative analysis of pioneering policies on minimum energy efficiency standards in the Scottish, English/Welsh, Dutch and French commercial real estate sectors. These are the four national policy regimes to employ these policy instruments to date with varied timelines spanning from 2009 to 2050. The methodological approach employs a document review of policy texts produced by policy makers and other stakeholders. The four policy regimes are evaluated in terms of their policy design focussing on minimum performance standards, forward guidance, scope and exemptions. A key finding is that, given the range of intervening factors, side-effects and uncertainties, there are difficult choices in striking a balance between phasing implementation, providing forward guidance and adjusting policy in response to evaluation. Whilst it was initially expected that most European Union jurisdictions would default to an Energy Performance Certificate related standard, our findings show that there has been a shift towards standards that are linked to actual rather than modelled energy consumption. However, for leased stock where the owner may have limited operational control, the separation of owners' responsibility for compliance and the users’ responsibility for operations makes designing consumption-based instruments more challenging. It is concluded that a central issue in policy design has been the trade-off between minimising the financial costs to property owners and occupiers of complying with performance thresholds and maximising reductions in energy consumption. There is growing recognition that regulatory economies of scale may be achieved by targeting large properties which allows for a large proportion of the total area of the stock to be covered whilst exempting a large proportion of transactions or properties.

Parker, G.
The moral economy of localism in England: neighbourhood planning as neoliberal 'apprentice piece'.
Territory Politics Governance - Article link

Abstract
The design, operation and modifications to neighbourhood planning are viewed here as a quintessential neoliberal project. This paper argues that the political policy construction and modification of neighbourhood planning in England is a quintessentially neoliberal project. It discusses the moral economy of the localism agenda where it is argued that the criticisms levelled at neighbourhood planning during its first few years have proven to be accurate and, over a decade since the policy was introduced in 2010, evidence of its failings has mounted. Yet, despite this, the UK government continues not only to pursue the policy and extol its virtues to local communities, but also actively require its success as an ‘apprentice piece’ of neoliberal policymaking.

Research Awards

Gavin Parker - Middlesbrough Council

• Title - Underrepresented Neighbourhood Plan Areas within Middlesbrough
• Total bid - £2,625; Amount to UoR - £2,625
• Type - Contract Research

Chris Foye - British Academy Small Grant

• Title - Private Rented Sector Discrimination in Gentrifying London
• Total bid - £6,582.98; Amount to UoR - £6,582.98
• Type - Standard Research Application

Research Bids

Claudia Murray - ESRC - New Frontiers of Research Fund

• Title - Adaptation and Mitigation Strategies with Indigenous Communities (AMSIC): Addressing the impact of extreme droughts and floods in a changing climate
• Total bid - £399,313; Amount to Real Estate & Planning - £170,159
• Type - Standard Research Project

PhD News

Fengting Zhang
Title - Mixed Feelings about Media Bias: Evidence from the Land Market in China

Name of Conference: 13th Financial Markets and Corporate Governance Conference: British Accounting and Finance Association 2023 annual conference
Location: Online Presentation and Sheffield, UK
Date Presented: 13 & 19 April