Banning imports of foreign grains in the past led to high land prices in the home country. This is similar to how the planning system today is causing high house prices and inequality.
David Ricardo's idea of economic rents and the impact of Corn Laws in the 19th century can be applied to today's housing market. The planning system is like today's equivalent of the Corn Laws.
Fixing the laws that restrict land development is crucial to reducing housing costs and land values. Similar to how repealing the Corn Laws led to lower grain prices and reduced economic windfalls for landowners.
Subscribers to a free substack newsletter about Britain's housing crisis can now access a year's worth of missed content in a comprehensive new report.
The report is the result of a collaborative effort between the author, Samuel Watling, the Centre for Cities, and housing expert Ant Breach.
The newly digitized dataset of European housing data in the report provides a broader examination of Britain's housing issues within a European context.
The average house price being higher over time may not necessarily indicate a crisis as other factors like larger houses or increased income availability can contribute to it.
The complaint in the housing crisis is not just about higher prices overall, but about lack of affordability for every property, especially compared to historical norms and international standards.
Britain's housing crisis has deep roots dating back to the 1960s due to a mix of demand subsidies and supply limits, leading to market volatility and historical financial crises like in 1974-75 and 2008-2009.