Part two

Comment. @balham456 “answer: build homes“ question: where? Floodplain? Farmland? Eroding coastline? Parkland?

My Reply. Rent control will return approximately 4 million homes from the private rental sector (PRS) to owner-occupiers or to be purchased by housing associations, meaning;

4 million properties that won’t need to be built.

To achieve a surplus (to further reduce scarcity as in the 1970s), we need to build approximately 500,000 homes over ten years. We have the same amount of property per capita as in the 1970s, but the PRS now owns a further 14% (4 million) more than in the 1970s.

This:

a) Creates scarcity, thus increasing land values and leading to higher rents and purchase prices.

b) Pressures governments to build 4.5 million homes, which often end up being purchased by hedge funds and overseas investors (e.g. Black Stone), who are influenced by certain MPs with questionable ties to gentleman’s clubs.

Houses and flats are being built everywhere, and densities are increasing. We should not be building on flood plains, but that is a topic for later discussion. Post-war governments focused on New Towns.

Building more properties is not the primary solution; returning the 4 million properties from the PRS to the housing market is more important. Then, we can consider where and when to add more.

Between 1920 and 1930, after four years of a rent freeze (1914-1918) and subsequent rent controls, 1 million properties were sold to tenants by their former landlords.

Thank you for your reply.