Restrictive planning laws have caused the UK’s housing cost explosion

No comparable country has built so few houses over the last 30 years.

Runaway housing costs have become one of the most pressing issues for low-income households in the UK. House prices are now two-and-a-half-times higher in real terms than they were in the mid-1970s, and rent levels have followed closely. What is more worrying than the level of prices or rents per se are measures of affordability, which look even bleaker. Historically, the ratio of average house prices to average incomes, both collected at the local level, has rarely exceeded a value of three. This meant that an average family could afford an average-priced house with three gross annual salaries. In a growing economy, we would expect this ratio to gradually fall over time, but the opposite occurred: It has risen to over five in most UK regions.

No other developed country except Australia has experienced such an extreme and sustained increase in housing costs. Spain, Ireland and the US have had their housing market bubbles, but they were transitory: Since 2008, real-term house prices there have almost returned to pre-bubble levels. Not so in the UK, where they have only fallen back to the levels recorded just before the peak.

High housing costs are not just decreasing living standards directly, but create numerous adverse knock-on effects. Most obviously, they raise the price of nearly every good or service that requires retail and/or office space, since the commercial rent is partially passed on to consumers. The cost of a standard food basket in the UK, for example, is 20 per cent higher than in France and 30 per cent higher than in Ireland. Another knock-on effect is the explosion in Housing Benefit (HB) payments. One in five households is now reliant on HB, which is not just a fiscal problem – the HB bill has doubled in real terms over the past two decades – but also erodes work incentives, due to the high withdrawal rate.

But the worst aspect is that the explosion in housing costs, and everything that flowed from it, was completely unnecessary. It could have been entirely avoided. The empirical evidence from around the world shows that temporary fluctuations aside, housing costs are largely determined by the severity of planning restrictions. This remains true even when controlling for a wide range of other factors, like population density, natural (as opposed to regulatory) obstacles, or the extent to which an area is built-up already.

The empirical literature merely confirms what common sense tells us. There are a variety of other alleged cost drivers that are frequently cited, but the problem with each of them is that the same factors are present in dozens of other countries, which have not experienced a housing cost explosion. Yes, the South East and the West Midlands are fairly densely populated, but no more so than a number of Swiss cantons, German Länder and Dutch provinces. Yes, the social housing stock has declined, but it still remains one of the largest in the developed world. Yes, there are empty and underused properties, but comparatively few by international standards. There is only one figure on which the UK really does stand out from its neighbours, and that is the number of newly completed dwellings (relative to population size) over the past thirty years. No comparable country has quelled housing development with such rigour for so long.

Housing development is not a threat to the attractive parts of the countryside, unless you assign that label to every muddy field and every stubbly patch of grass, as the anti-development Nimby lobby does. Only one tenth of the English surface area is developed at all, and within that tenth, the single biggest category is domestic gardens. There is plenty of room for development without sacrificing areas of natural beauty. It is a matter of confronting vested interests, which, unfortunately, the present coalition is not particularly good at.

Kristian is the author of Abundance of land, shortage of housing, a new report from the IEA.

A house being built near Bristol. Photograph: Getty Images

Kristian Niemietz joined the IEA in 2008 as Poverty Research Fellow.

Kristian is currently a PhD student in Public Policy at King's College London, where he also teaches economics. He is the author of the recent IEA Discussion Paper on planning reform, Abundance of Land, Shortage of Housing.

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Labour is a pioneer in fighting sexism. That doesn't mean there's no sexism in Labour

While we campaign against misogyny, we must not fall into the trap of thinking Labour is above it; doing so lets women members down and puts the party in danger of not taking them seriously when they report incidents. 

I’m in the Labour party to fight for equality. I cheered when Labour announced that one of its three Budget tests was ensuring the burden of cuts didn’t fall on women. I celebrated the party’s record of winning rights for women on International Women’s Day. And I marched with Labour women to end male violence against women and girls.

I’m proud of the work we’re doing for women across the country. But, as the Labour party fights for me to feel safer in society, I still feel unsafe in the Labour party.

These problems are not unique to the Labour party; misogyny is everywhere in politics. You just have to look on Twitter to see women MPs – and any woman who speaks out – receiving rape and death threats. Women at political events are subject to threatening behaviour and sexual harassment. Sexism and violence against women at its heart is about power and control. And, as we all know, nowhere is power more highly-prized and sought-after than in politics.

While we campaign against misogyny, we must not fall into the trap of thinking Labour is above it; doing so lets women members down and puts the party in danger of not taking them seriously when they report incidents. 

The House of Commons’ women and equalities committee recently stated that political parties should have robust procedures in place to prevent intimidation, bullying or sexual harassment. The committee looked at this thanks to the work of Gavin Shuker, who has helped in taking up this issue since we first started highlighting it. Labour should follow this advice, put its values into action and change its structures and culture if we are to make our party safe for women.

We need thorough and enforced codes of conduct: online, offline and at all levels of the party, from branches to the parliamentary Labour party. These should be made clear to everyone upon joining, include reminders at the start of meetings and be up in every campaign office in the country.

Too many members – particularly new and young members – say they don’t know how to report incidents or what will happen if they do. This information should be given to all members, made easily available on the website and circulated to all local parties.

Too many people – including MPs and local party leaders – still say they wouldn’t know what to do if a local member told them they had been sexually harassed. All staff members and people in positions of responsibility should be given training, so they can support members and feel comfortable responding to issues.

Having a third party organisation or individual to deal with complaints of this nature would be a huge help too. Their contact details should be easy to find on the website. This organisation should, crucially, be independent of influence from elsewhere in the party. This would allow them to perform their role without political pressures or bias. We need a system that gives members confidence that they will be treated fairly, not one where members are worried about reporting incidents because the man in question holds power, has certain political allies or is a friend or colleague of the person you are supposed to complain to.

Giving this third party the resources and access they need to identify issues within our party and recommend further changes to the NEC would help to begin a continuous process of improving both our structures and culture.

Labour should champion a more open culture, where people feel able to report incidents and don't have to worry about ruining their career or facing political repercussions if they do so. Problems should not be brushed under the carpet. It takes bravery to admit your faults. But, until these problems are faced head-on, they will not go away.

Being the party of equality does not mean Labour is immune to misogyny and sexual harassment, but it does mean it should lead the way on tackling it.

Now is the time for Labour to practice what it preaches and prove it is serious about women’s equality.

Bex Bailey was on Labour’s national executive committee from 2014 to 2016.