Only Capitalism Can Solve The Housing Crisis

The housing crisis of ever rising prices and unaffordability can only be ended by a capitalist revolution in housing, argues leading architect Patrik Schumacher in a thinkpiece for the Adam Smith Institute.

Executive Summary:

• Restrictive planning laws have led to enormous growth in London’s rental and house price to earnings ratios

• Housing crisis is a failure of politics not markets and is the result of restrictive planning laws.

• Government should resist calls to impose rent controls or mandatory long-term tenancies as they reduce supply and hamper labour mobility

• Sadiq Khan’s plan to mandate that up to 50% of developments be “affordable” will discourage development and push up prices elsewhere

• Micromanaging land uses creates high price distortions in our cities and should be abolished

To read the full essay, click here.