The Decline Of Home Ownership Will Not Be Reversed Until Housing Is Plentiful And Cheap

On this decline of owner-occupation the Labour-commissioned Redfern Review, chaired by Taylor Wimpey chief executive Pete Redfern, this week reported its findings to shadow housing minister John Healey. It deserves credit for flagging up the essential, and to many counter-intuitive, point that simply boosting the supply of new homes will do little on its own to increase home ownership. This is because, even if housebuilding output reached the frankly fantastical level of 300,000 homes a year (last year’s output was 189,650), demand for housing is so great that the downward impact on prices would still be tiny. This needed to be said, and there is no doubt Redfern’s is an important contribution to the debate. But when it comes to unpacking the issue, and charting a way forward, it as remarkable for what it leaves unsaid as for what it says.

Article source: