At the end of last week there was a bit of a furore generated by a blogpost published by the Adam Smith Institute. A young man called Theo Clifford argued that the solution to the British housing crisis lies in deregulation. That in itself is not, perhaps, an earth-shattering observation to find emerging from a libertarian think tank. Clifford, though, takes the argument a stage further than we usually see. He argues that Britain’s housing problem is an absence of slums. Social welfare would be improved if we were to deregulate so that housing consumers can “choose” poor quality, cramped, overcrowded and/or insecure accommodation, if that is the amount of accommodation that would satisfy their preferences.
This argument can be criticised from a number of directions. And it has been. [Read more…]