It is tempting to think that the UK housing system is uniquely dysfunctional. Policy over so many years has so manifestly failed to get the measure of the problem and failed to take sufficiently radical action that we might be tempted to consider those in charge uniquely inept. If it’s a choice between cock up and conspiracy, go for cock up every time. Type of thing.
We might, however, review the recent policy past in the light of a paper by Gurran and Phibbs entitled Are governments really interested in fixing the housing problem? (£), which has just appeared online in Housing Studies. It tells a story of policy inadequacy in the face of chronic housing affordability problems that feels rather familiar. But the authors take Australian housing policy at federal level and in New South Wales as their subject.
The themes of their policy story have features strongly in the British context over the same period: placing the blame for sluggish housing supply on overly burdensome regulation and state attempts to capture value from rising prices for public benefit; in the face of calls for more radical action, rejecting public housing as a solution to affordability problems. Gurran and Phibbs offer some examples of high profile policy pronouncements that seek to carefully construct the issue as one to which income redistribution or public housebuilding cannot be seen as effective solutions. The policy response is therefore to dilute planning regulations and lift requirements to provide affordable housing and infrastructure through the planning system. Significant funding for public housing only featured as part of the extraordinary response to the Global Financial Crisis of 2008. All the while prices and rents continue to rise.
Gurran and Phibbs are, however, very much not on the side of the cock up theory of inadequate policy. [Read more…]