June 11, 2019
By Anthony Breach
This report from the UK think tank Centre for Cities looks at how the planning system creates housing shortages and drives wealth inequality.
As the housing crisis in Britain’s most prosperous cities has grown, so has the wealth of their homeowners. While local demand for housing is driven by the strength of the local economy, supply, in contrast, does not respond to demand or economic performance. The housing shortages caused by these planning failures push up house prices in growing cities. This drives housing equity growth for a few existing homeowners, fuels increasing housing costs for renters and first-time buyers, widens regional inequality, and destabilises the national economy and the financial system. This report explores the relationship between urban economies and housing wealth in England and Wales.Read Full Report