Yes, Britain does have a housing crisis – and building more will fix it

Could put more houses there, lads. Image: Getty.

Most people accept that Britain is in the middle of a housing crisis. Measured by the diminutive size of our homes or the inflated size of our rents relative to other countries, it’s clear that we’re doing something seriously wrong. Most spectacularly, although less robustly, the ratio of house prices to incomes has reached an incredible 14.2 in London, according to Hometrack.

Meanwhile, a small group take the contrarian view that, actually, there is no housing crisis and, if there is, building more homes won’t solve it. The most notable is Ian Mulheirn of Capital Economics, who recently explained his thoughts in a CapX blog.

He makes two good points and one that’s worthwhile, but ultimately irrelevant. The two good points are, firstly, that there is no UK-wide housing crisis. There are plenty of towns where rents and house prices are affordable for people on average incomes. Flattish national rents over the last ten years mean that London’s higher rents must be balanced by falling rents elsewhere.

The second good point is that house prices measure more than just the cost of consuming housing. They are also affected by expectations of the future and prices of other assets and, indeed, money itself, in the form of interest rates. Better to look at rents, which only measure the price of housing consumption during a fixed period.

His worthwhile yet irrelevant point is that household growth has been slower than official projections, upon which the central plans for housing supply have been made. These projections were made by assuming that the fall in average household size in the years to 2001 would continue; in fact, it flattened out. So household numbers only rose in line with population, instead of faster.

But this point is ultimately irrelevant, for two reasons. First, part of the reason why households have stopped shrinking is because of housing shortages. Adults are living with parents for longer and sharing more frequently rather than living alone, because high prices are prompting people to economise on housing consumption.

Secondly, prices and rents offer a far more sophisticated guide to the demand for housing (and its relative shortage of supply) than comparing crude official statistics on the number of housing units and households.

The main problem is that we have too little housing in the economically dynamic places where jobs are available. The fact that housing is cheap in places hundreds of miles from where the majority of job vacancies are based is of little relevance. The fact that councils in depressed areas welcome housing developments, because of the construction jobs they provide and the prospect of regeneration, makes similarly little difference.


Crudely put, we have a marked shortage of homes in London, particularly inner and west London, where job vacancies are most common and highly paid.

Ian points to low rental yields as evidence of a lack of a problem with supply and demand for housing in London. This is true, but the yield is the wrong measure for the question he has in mind. The price of a residential property includes the value of the artificial scarcity of land imposed by restrictions.

A better measure would be to adjust the rental incomes by the additional rent possible if commercial considerations were the only limit on a developer, instead of planning restrictions. Potential yields are enormous. It’s not for nothing that developers try so hard to get permission for extra storeys on their buildings, accused of skull-duggery by the NIMBY groups who oppose them.

And these substantial potential yields indicate that there is indeed a major problem with supply and demand for places to live. Rents in London are the highest in the world (or near enough, depending on your index). They wouldn’t be for long, if developers and landowners were allowed to respond to those enormous potential profits by supplying the homes that high rents indicate we need.

More housing where it’s needed would provide much wider benefits, too, than just cheaper housing for those already living in housing unaffordability hotspots. More of us would be able to move to where the jobs are, not just in London but also other cities like Oxford, Cambridge, Bristol and York.

That would reduce demand and therefore housing costs in the places where people move from, but it would also improve labour markets, removing a block on people shifting their labour into more highly-valued (and highly-paid) uses.

And the knock-on effects on commercial property would further improve productivity. Drawing on work by economists Chang-Tai Hsieh and Enrico Moretti, the pro-housing group London YIMBY has suggested that allowing enough homes to be built where they’re needed could increase national income by 30 per cent.

Yes, we do have a housing crisis. Letting homes be built where they’re needed will fix it. And doing so might also offer at least a partial answer to our "productivity puzzle", too.

Whether or not today’s housing white paper will do enough to tackle the NIMBYism that is at the heart of the crisis is another matter entirely.

Rory Meakin is research fellow at The Taxpayers Alliance.

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Wild boar are moving back to Genoa, and not everyone is pleased

A wild boar, c1933. Image: Getty.

Crossing the Ponte Gerolamo Serra in the Italian city of Genoa, I spotted a small crowd clustered by the river wall. I approached, intrigued, and peered over the wall to discover the subject of their delight: a sounder of eight wild boars – the adults sheltering from the heat in the undergrowth, while the juveniles foraged among the foliage that grows in the river bed during the dry summer months.

In any other city, such a sight might have been surprising. But in Italy, and particularly in the region of Liguria, where Genoa is located, the population of wild boars has been increasing at such a rapid rate that these incidents are now common. Across the country, it’s estimated that the population has risen from 600,000 to 1m over the past decade.

But while wild boars may look comically out of place trotting about the city, it’s actually a natural result of the way people have migrated – and the wars they have fought – over the course of recent history.

Making a comeback

A species native to Europe, the wild boar (or “cinghiale”, in Italian) largely disappeared from its historical territories during the 18th and 19th centuries. Their decline was widely attributed to the combined effects of habitat change, competition for space and resources and, of course, hunting.

Wild boars were a prized quarry, revered for their ferocity – and the danger involved in pursuing them. According to local folklore from the region of Liguria, the last truly wild boar was hunted and killed in 1814, in the province of Savona.

After an absence of more than a century, wild boar began to return to Liguria, and to the neighbouring region of Piedmont. A further influx occurred during World War I, when it’s believed that military activities in the south-east of France forced parts of the population back into Italy over the Alps.

Although hunting fraternities were quick to augment this fledgling population with wild boars transported from elsewhere, the return of the species was primarily due to natural causes. From the 1950s onwards, traditional agricultural practices were abandoned as more and more people moved from rural towns into the cities. This meant that large areas of formerly cultivated terraces and pastures were rapidly overgrown, fast becoming dense secondary woodlands.

A city gone wild

This spontaneous “rewilding” has become a controversial issue in the region. Many conservationists and environmental organisations consider the region’s return to a “wild state” a success. But others believe that the encroaching wilderness signals a loss of traditional woodland knowledge and a reduction of biodiversity, associated with the pastures and meadows.


The province of Genoa is among the areas most densely populated by wild boar in Italy, with an estimated 25 boar per 10km². Rewilding processes have brought woodlands to the city limits, blurring the boundary between rural and urban areas. The species has expanded beyond the hinterlands, colonising highly urbanised, densely populated city spaces in Genoa, drawn by the abundance of food waste created by humans.

In 2009, the infamous boar Pierino made his home at Righi, on the outskirts of Genoa, where he was routinely fed with focaccia by enthusiasts. Today, a family of wild boar call the Albergo dei Poveri – a historical hostel for the Genoese poor in the city centre – their home.

But while their antics are often recorded and shared with glee on social media, the threats posed by the presence of wild animals has become a preoccupation for the city’s municipal administration.

Boorish behaviour

Wild boar have been involved in a number of traffic accidents, and have proven to be particularly dangerous when with their young, attacking dogs and even people. The city council in Genoa has put forward many proposals to reduce the number of animals in the city, ranging from forced removals, to sterilisation, increased attention to waste disposal and approved hunts. About 90 wild boar were reportedly culled in 2018.

Needless to say, each of these measures has been hotly debated. Animal advocacy groups staunchly oppose the proposals, and sometimes obstruct the authorities’ attempts to take action, often sending patrols to care for the animals, and even give them names. But other residents are displeased with the animals’ presence in the city, and have consulted with the council on how to address the problems that they cause.

And so Genoa continues to grapple with thorny issues surrounding the presence of wild boar in the city, with the city authorities seeking to resolve a polemical issue that embroils the lives of animals and humans alike. So far, a collective, coherent and communally agreeable strategy has proven evasive; one that considers the need for public safety, hygiene and health with the ethical responsibilities towards to wild boar themselves.

Meanwhile, the animals themselves continue to lounge and forage beneath the Ponte Gerolamo Serra and elsewhere, bringing a little of the wilderness into the city.

The Conversation

Robert Hearn, Assistant Professor in Human Geography, University of Nottingham.

This article is republished from The Conversation under a Creative Commons license. Read the original article.