Deputy Director of the Adam Smith Institute, Sam Bowman, highlights the dire state of England's housing crisis and argues for planning system reform, as laid out in the new ASI report The Green Noose: An analysis of Green Belts and proposals for reform.
It will surprise no one to hear that the UK, particularly London and southern England, is experiencing a housing crisis – one that appears to be getting worse. According to the LSE’s Paul Cheshire, since the 1980s we have systematically under-built between 1.6m and 2.3m homes. House prices are now extremely high after a long period of growth, and they may continue to rise for the foreseeable future.
A new paper published today by the Adam Smith Institute reviews the evidence around England’s housing shortage, with particular focus on the Green Belt. It concludes that the Green Belt is restricting the supply of housing in a way that has a significant impact on prices – and doing so in a way that effectively redistributes wealth from poor to rich. To solve the housing crisis, we argue that we must scrap or, at a minimum, roll back the Green Belt.
Developable land, and hence the supply of housing, is constrained by the Green Belt. As a result, houses have become an investment good whose cost reflects expected future increases in demand, not just the cost of supplying a house at a given quality point.
The new ASI report, The Green Noose: An analysis of Green Belts and proposals for reform, looks at the Green Belt’s impact on England’s housing shortage. After a comprehensive review of the causes of the housing crisis, it concludes that the planning structure is out of date and in need of radical reform.