role of housing in cities: how does it vary and why does it matter?
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Role of housing in cities: How does it vary and why does it matter? . Andrew Carter Centre for Cities April 2014. Anomie – a poor sense of belonging, UK in detail Geographic map Proportional map Label areas . Cities matter to the national economy . But their performance varies . - PowerPoint PPT PresentationTRANSCRIPT
Andrew CarterCentre for Cities
April 2014
Role of housing in cities: How does it vary and why
does it matter?
Cities matter to the national economy
But their performance varies
National recovery has been going at different speeds
Important for shelter and for economic reasons . . .
Positively: • Contributes £18bn to the economy• Building 100,000 homes could boost national GDP by 1%• Employs 250,000 people• Every 1 new home supports 1.5 new jobs• £1 spent generates additional £2• Quality of place offer
Negatively: • High house prices reduce migration & household formation• Drives up wages (which drive up house prices)• Encourage ‘inefficient’ investment decisions• Raises housing benefit expenditure
UK needs more houses
But 3 pieces of evidence show variation in housing
1. Gap in ability to get a mortgage
2. House price growth since the crash
3. Housing supply is just one element of housing problem
… meaning the problem is not the same everywhere
And even within cities there is variation
Policy should reflect this
Milton Keynes shows that it can be done…
Need a placed-based housing & economy policy agenda
• Boost land supply• Devolve land-use planning• Refine New Homes Bonus incentive• Remove caps on borrowing for housing
investment• Introduce greater competition in house-
building industry• Encourage collaboration within housing
markets
Questions?Andrew Carter
020 7803 4318
07900 168457
@AndrewCities