The impact of splitting up and divorce on housing careers in the UK

Abstract

Using 1991-2004 data from the British Household Panel Survey (BHPS) this paper analyses the effect of union dissolution on the occurrence of moves, changes of dwelling type, and the probability of moving out of owner-occupation. The main contributions of this paper are that it takes into account the rise in the occurrence of cohabitation, by analysing the dissolution of cohabiting and marital unions separately, and that it studies the effect of re-partnering on housing careers. Using logistic regression models clear evidence was found that the dissolutions of marriage and cohabitation result in different housing career outcomes. In particular, those who divorce experience a larger drop in housing quality than do those who split up from cohabitation. Starting a new relationship leads to more upward moves in the housing career compared to remaining divorced or split up.