Raising the Roof : How to solve the United Kingdom's housing crisis

The United Kingdom’s housing costs are among the highest on earth, and London is virtually the most expensive major city in the world for renting or buying a home. People often avoid moving to work in productive sectors because nearby housing is too expensive. The proportion of Britons who need financial support for housing is almost unique. The 1947 Town and Country Planning Act put land use under unprecedented statutory control, and the resulting regulation has caused at least half the unprecedented rise in house prices since the 1970s. Since the war, government has also centralised taxation. With 95% of taxes collected centrally, local authorities have little incentive to allow housebuilding to gain additional revenue from new residents. National-level taxes drive house prices higher: Stamp Duty hinders downsizing, tax on buy-to-let landlords increases rents; "Help to Buy" inflates demand and pushing up prices. Radical action is needed to lower housing costs and remove fiscal and regulatory barriers that hinder supply. More government land can be used for housing. Reverse Compulsory Purchase Orders would allow the private sector to demand its sale. A cabinet minister could be given responsibility for identifying and releasing state and green belt land, where it achieves none of its official purposes. Permitted development rights for individual streets or villages would see residents gain from building, as controlling local building lets people demand the styles that research shows they want and letting urban streets beautify will remove much public opposition to expanding the housing stock