Author Archives: S

Today there are more affordable products than ever. Not only have freer markets driven down prices on almost every consumer good imaginable they have expanded range. You can get more luxury goods than ever before but you can also get more discount/budget goods. Electronics, clothing, food, beauty products, household items, I could go on… And yet we are experiencing a so-called ‘Cost of Living Crisis.’ This is a fundamentally dishonest way of framing the debate about cost of living today. There is no ‘cost of food crisis,’ no ‘cost of washing machines crisis,’ and no ‘cost of clothes’ crisis. The only thing that is more expensive is housing.

Housing outside London is 35% more expensive than its equivalent in wider Europe according to a new study, ‘The impact of the supply constraints on house prices in England,’ set to be published in the Economic Journal. This is certainly not due to a lack of enfranchisement. Like everything else credit and mortgages are cheaper than they have ever been due to interest rates being kept artificially low. So what’s the problem? According to this paper, houses are too expensive because the supply has been needlessly cauterized. The UK has suffered from dysfunctional housing policies since the aftermath of WWII. However, the seeds of this dysfunction were sown even earlier. The Town & Country Planning Act 1947 deepened this dysfunction and houses are meaner in size and shorter in supply than they ought to be directly because of this legislation and its subsequent incarnations. The supply issue was subsequently worsened most notably under Thatcher and Blair.