Analyzing the effects of Land Use Regulation on Residential land supply

Urban Planning Laws and Regulations effect on the space structure of many cities. For example, green belt is one of these rules that prevent predetermined urban border growth and new construction. This article aimed at analyzing the effect of greenbelt on supplying the residential lands in London City of England Country. Considering that the greenbelt boundary around the cities in England has not changed in recent decades we used a cross- sectional space model. To investigate the impact of green belt on residential supply we used GIS software as well as data (share developed land and share in greenbelt) placed on 1Km. length of the furthest greenbelt boundary stretch, whether inside or outside of the greenbelt. The results of this article show that the green belt has a significant and negative effect on the portion of the developing lands. In the other word it may be said that land use regulation and politics have a significant negative effect on supplying the residential lands, and such land-use rules and politics prevented the urban border from growing and developing. Therefore, one of the economic effects of the green belt is the increase in housing prices in these cities due to restrictions on housing supply.