An analysis released this week by the property firm Savills spelled out just one of the reasons why. A property downturn could, it estimated, reduce the number of affordable homes being built by a quarter. When prices fall, developers’ profits shrink and they retreat from the market. And when developers stop building, promises to stop future buyers being locked out of the market by building 300,000 new homes a year aren’t worth the manifestos they were written on.
If every home in the country has just become 30, 50% more affordable, why worry about how many affordable houses are being built?