One of the reasons I support building more homes is it will help bring down housing costs if we keep at it. Government research finds a 1% increase in housing stock drives a 2% fall in house prices or rents – remember, housing costs for the average family have doubled from 9% to 17% of income since 1980.
But there are other reasons to build. Often we forget how much new building affects the quality of housing, not just the price. The amount of floor space the average private renter has is down 16% since the 90s – equivalent to a city the size of Nottingham. People rent dilapidated and hard-to-heat homes because they have no choice – with too few properties meaning no competition between landlords to up their game.
