Kate Barker has been a significant presence in UK housing policy debate for a decade. Her report for the Blair government in 2004 crystallised the idea that we need to be building north of 200,000 houses a year to stabilize the housing market. And by stabilizing the market the report meant stopping real house price rises, rather than necessarily improving affordability. This idea has been floating about in the policy ether ever since, acting as a benchmark against which current policy is judged. Estimates of target housing supply have varied a bit since then as demographic projections and models get revised, but the brute fact is that actual housing supply has only exceptionally come anywhere close to hitting the sorts of numbers Barker viewed as necessary. Since the financial crisis new supply has been hovering around half what is needed.
Barker has returned to the fray with a brief book entitled Housing: Where’s the plan? The book focuses on private sector housing. Barker notes, rightly, that the social sector deserves a book length treatment of its own.
Brian has already offered his perspective on the book. I broadly agree with his assessment. Barker’s analysis is pitched at the right sort of level – we need to think broadly and systemically about the problem if we are to get any real purchase on it. Consequently simple solutions are unlikely to be adequate. The book doesn’t pin the blame on planning and move on. Barker reminds us of the powerful forces driving spatial development at the regional level. She concisely demonstrates the complexities and contradictions in the way we think about taxation in the housing market. Indeed, perhaps not surprisingly, the strongest component of the argument is the review of taxation and monetary policy. The book does a good job of conveying a sense of the interconnections within the housing system and the perverse consequences that can arise from intervention, however well-intentioned. [Read more...]