Adam Smith Inst - Help to Buy won't build the young any houses
The government has announced an extra £10bn would be used to revive the Help to Buy scheme. This will do nothing to increase the supply of housing, an issue we've looked at in detail recently, but could increase demand and so exacerbate the housing crisis it's targeting.
Sam Bowman, Executive Director of the Adam Smith Institute, decried the move saying:
"Reviving Help to Buy is like throwing petrol onto a bonfire. The property market is totally dysfunctional because supply is so tightly constrained by planning rules, and adding more demand without improving the supply of houses is just going to raise house prices and make homes more unaffordable for people who don't qualify for the Help to Buy subsidy.
"London has the second highest property prices per square metre in the world, only behind Monaco. New build houses are even smaller in the UK than in the Netherlands, despite being the most densely populated country in Europe. Only 2% of England is built on, but we're fenced in by NIMBYs and planning laws that block development nearly anywhere.
"To improve the housing market you need to change the rules of the game, so that damaged parts of the green belt can be built on, so we can have more dense and efficient development of existing urban areas, and so that locals benefit from new developments near them. Reviving Help to Buy is an astonishingly ill-judged move that may prove economically and politically disastrous for the government."
For further comment or to arrange an interview please contact Matt Kilcoyne on 07584778207 or email firstname.lastname@example.org.
Latest News from
JRF - New ONS figures reveal inflation rates are at five year high19/10/2017 10:35:00
Ashwin Kumar, Chief Economist at the Joseph Rowntree Foundation, responded to the latest figures from the ONS
IFG - Cycle of crisis, cash and repeat in public services costs government £10bn19/10/2017 09:35:00
The Government is spending over £10bn in five years just to keep troubled services – such as hospitals and prisons – going, according to a new report. Yet this extra money is not sorting out any of the underlying problems these services face.
NIESR: Head of UK Macroeconomic Forecasting reacts to the latest CPI inflation data18/10/2017 13:25:00
NIESR’s Head of UK macroeconomic forecasting, Amit Kara yesterday commented on the latest CPI inflation data.
Policy Exchange - The Clean Growth Strategy: worth the wait?17/10/2017 13:35:00
The Clean Growth Strategy, published last week after long being delayed, signifies a step change in Government thinking and is ambitious in its scope.