The Impact of Supply Constraints on House Prices in England

Using exogenous variation from a policy reform, vote shares and historical density to identify the endogenous constraints-measures, we find that:

1. Regulatory constraints have a substantive positive long-run impact on the house price-earnings elasticity;
2. The effect of constraints due to scarcity of developable land is largely confined to highly urbanised areas;
3. Uneven topography has a quantitatively less meaningful impact;
4. The effects of supply constraints are greater during boom than bust periods.