Ministers are planning to build just a sixth of the affordable rented homes needed to meet demand, according to a damning assessment of England’s crisis-hit housing market.
Nearly 600 extra low-cost rented homes need to be built every week if demand is to be met, as more low-income families are locked out of owning their own home. However, the government is only planning to deliver an extra 100 a week under current proposals. It means that demand is outstripping new supply by 500 homes a week, according to new analysis by the independent Joseph Rowntree Foundation (JRF) thinktank. It said that this exposed government building plans as “woefully short” of what is required.
Building a new mansion increases the supply of housing buy that one unit that then brings down, infinitessimally to be sure, the price of all other houses as supply increases relative to demand. Do this a few hundred thousand times and we’re getting there.
It’s also true that the mansion gets occupied, meaning one smaller and more affordable house becomes free for occupation. After all, that is how it works. Cheaper housing tends to be the older stuff, no?