A few weeks ago Janan Ganesh in the FT described the UK housing market as an ‘institutionalised pathology’. The problems that the housing market is causing for the British economic and political system seemingly become ever more apparent by the day.
There is an increasingly strong coalition of opinion uniting behind the sort of radical action that is needed on housing supply to deal with the problems. The recent intervention by KPMG/Shelter, or the RSA, or today at the BBC website all set out prescriptions that bear more than a family resemblance.
And as a similar message emerges from different quarters it throws into sharper relief the timidity and short-term self-interest of the political class. The political economy of housing may have led politicians to a predictable level of inactivity. It may be that it is only if and when the private renter vote is effectively mobilised that change will occur. Perhaps only then will a government be brave enough to take on the countryside preservation lobby. But the problems intensify in the meantime. [Read more...]