Houses will become completely unaffordable for first-time buyers unless many more are built, according to the National Housing and Planning Advisory Unit.The unit was set up after Kate Barker, the economist, proposed in an official report that regional authorities ought to be advised on how much and what type of housing should be planned.
It is chaired by the economist Stephen Nickell, who was a member of the Bank of England’s Monetary Policy Committee, where he shared many a debate on interest rates with Ms Barker.
This experience taught them both that the housing market cannot sensibly be regulated by interest rates while it is fundamentally distorted by a long-term shortage of supply.
Ms Barker put the accumulated shortfall at up to 600,000 homes in England alone.
First-time buyers priced out by failure to build homes