Tackling our Housing Crisis

Everyone agrees housing is in crisis. This timely report from Green House challenges the conventional policy wisdom of ‘just build more homes.’ It argues that the most significant cause of the affordability problem is not shortage of supply but a high level of inequality combined with a dysfunctional financial system. Housing has become the preferred investment, rather than simply somewhere to live. Savings going into housing, and unsustainable mortgage lending have pushed up prices. Instead of relying on a huge and environmentally costly building programme, we should ensure that the existing housing stock is better used; control rents and increase security in the private rented sector; discourage the purchase of housing primarily as an investment; reduce regional inequalities; and provide more affordable homes.