Good Summary from Inside Housing
http://www.insidehousing.co.uk/third-time-lucky?%2F6523596.blog
According to Centre for Cities: "Fundamentally, the measures are based upon the premise that the planning
system is the key issue both in the short term and long term to getting the more
houses that the country needs. While there are definite gains to be made by
tweaking the system, we also need house builders to pull their weight too.
Many house-builders bought land at the peak of the market and are now stuck,
understandably unwilling to incur losses. But this means there are large amounts
of land which have permission granted but on which no building is taking place.
This restricted supply of both land and housing is pushing up prices.
Part of the problem is the lack of competition within this industry. It is
dominated by a few large firms who are not incentivised to keep prices
competitive nor incentivised to sell on land they can’t/won’t build on. Options
for encouraging more competition within the industry as well exploring ways to
use the tax system to ensure that land with planning permission is built out
within a reasonable time-frame need to be explored further. Recent initiatives
such as IKEA’s cheap, flat-pack houses, as well the refocus on the role of
self-build offer a glimpse as to how the industry might develop in the future."
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