Will supply fix the housing crisis?

A paper recently published by Ian Mulheirn,  Executive Director and Chief Economist of Renewing the Centre at the Tony Blair Institute for Global Change, claims that the undersupply of housing story is unconvincing and boosting housing supply does not offer a solution to the housing crisis and a “fundamental rethink is badly needed”. It suggests that the number of houses has grown faster than the household count and the methodology used to calculate household projections uses questionable assumptions which can obscure the figures (something the Office for National Statistics has recently addressed).

The paper explores trends found in survey data and considers the reasons for house price increases between 1996 and 2018 and claims that the dominant cause of the collapse in home ownership appears to lie in the mortgage market with the abrupt slowdown in mortgage lending to FTBs, which almost halved between 2007 and 2008, and did not recover until around 2014.

Read the full report here.