IN A LEADER published today the Financial Times offers a rather gloomy assessment of housebuilding in Britain. To keep up with demand, Britain needs to build well over 200,000 dwellings each year. But typically it manages about half that. This is largely down to the intransigence of local councils, many of whom oppose housebuilding because it will irritate local residents. There are many potential solutions to this problem. I think the FT ignores the best one.
The article argues that central government must force through planning applications (as the current government has promised to do). David Cameron, the prime minister, "should be prepared if necessary to crack the whip", the leader argues. George Osborne, the chancellor, has indeed promised to penalise councils that fail to make planning decisions "on time" (which probably means within 13 weeks). The government also promises to cajole local councils into building high-density housing.
But how effective will all this really be? Local councils' spending per person has already been cut by 20% in real terms in the last five years, with more cuts to come. The government is hardly going to make matters even worse by whacking on huge fines too. A similar problem will...Continue reading
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