Actually, that headline is a lie. We just love to say "We told you so".
And so it is with our repeated insistence that the vastly high price of British housing is caused by the idiot planning system currently in place:
New causal evidence on the impact of supply constraints on house prices shows land use regulation to be a major culprit of England’s current housing affordability crisis. Absent regulation, house prices would be lower by over a third and considerably less volatile. Young households are the obvious losers, yet macroeconomic stability is also impaired and productivity may suffer from constrained labour supply to the thriving cities where demand is highest.
Knocking 30% off house prices would obviously cause short term pain. But equally obviously would be of major benefit.
Figure 1 summarises our empirical findings. It illustrates the impact on house prices of removing, one by one, each of the three supply constraints in an average English local planning authority (LPA). What the figure shows is that house prices would have risen by about 100% less, in real terms, from 1974 to 2008 (from £79,000 to £147,000 instead of to £226,000) if, hypothetically, all regulatory constraints were removed.
As we have been telling you the solution to British house prices lies in simply blowing up the Town and Country Planning Act of 1947 and all subsequent revisions of it. Markets do indeed work and bureaucratic regulation of them does not.
And, yes, we have indeed told you this but then we just love being able to point out that we have told you so.