We’ve seen IPPR launch a fuller version of its proposals for shifting housing subsidy away from housing benefit and back towards bricks and mortar. It attempts to tackle the thorny issue of how to find the money to subsidize new building while still paying housing benefit to those who need it, given that a future government isn’t likely to put a lot more money into housing.
We’ve also seen some high profile housing-related programmes on the television, particular in relation to the less wholesome aspects of private landlordism.
And, perhaps more significant in the short term, Mark Carney has turned talk of macroprudential regulation into some concrete proposals for capping loan-to-value ratios. Quite how that will affect the way the market evolves over the coming months is a tricky question to answer. The industry view would appear to be “not much“. Answering the question is made trickier by the emergence from the red corner of a much stronger set of proposals for a mansion tax. It has been argued that these proposals, coming on top of the well-established support for a mansion tax from the Liberal Democrats, bring such a tax a step nearer and, consequently, are having a chilling effect on the top end of the market in London.
Although the picture is murky, there is a quite a bit of talk at the moment about the market starting to soften. And that is even before interest rates rise. So we could be entering a new phase in the evolution of the market.
For me one of the most interesting developments over the last week or so is the appearance online of a paper by Suzanne Fitzpatrick, Bo Bengtsson and Beth Watts entitled Rights to housing: Reviewing the terrain and exploring the way forward (paywalled, unfortunately).