Affordability and the Supply of Housing: Third Report of Session 2005-06
Great Britain: Parliament: House of Commons: ODPM: Housing, Planning, Local Government and the Regions Committee
The Stationery Office, Jun 20, 2006 - Architecture - 76 pages
The Committee's report finds that the Government's plans for a major house-building programme are based on the widespread belief that increasing the volume of housing stock is the most important way to tackle the crisis of unaffordable housing in the UK; however, as housing policy is increasingly based on household growth projections, it is important that these projections are kept under review as firmer information becomes available. Promoting homeownership is an underlying objective of the Government's programme, but although it offers unparalleled opportunities for some households to accumulate wealth, it is not a viable option for many others, and therefore the provision of social housing for rent should be given equal priority. A simple supply and demand model cannot be applied to the housing market, and the multitude of factors affecting house prices means that it is very difficult to support an increase in housing supply simply on the basis of improving affordability. The report also highlights concerns that local authority powers to prioritise developments on brown field sites in urban areas should not be eroded; and that the house-building programme in the wider South East will have to be carefully managed as it is an area with major water shortages and significant flood plains.
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