The Institute of Economic Affairs (IEA) think tank have responded to recent Government announcements regarding housebuilding by calling for further changes to planning legislation
The IEA writes:
Mark Littlewood, Director General of the Institute of Economic Affairs, said ‘Constraining housebuilding through artificial boundaries such as green belt restrictions is a key reason why house prices in the UK are very high and new homes increasingly small. Yet again, instead of reforming planning for all, politicians are trying to plan where new homes should be built and micro-manage the damage caused by existing regulations which hamper private sector housebuilding. Ultimately people, not governments, need to decide where homes should be built.
The potential gains from planning liberalisation are well documented: lower housing costs, a reduced cost of many goods and services, a better functioning labour market, and higher productivity and wages. It’s high time our politicians showed an appetite for taking on the vested interests opposed to reform.’
