This one is apparently from the bloke who used to sell pasties. Unless there\’s two Greggs out there.
But it\’s got all the usual flavours of Ritchienomincs in it. Just print the money via QE and build lots of houses. It also contains this absolute gem:
While there are plenty of suitable sites for building already available, a programme on the scale I envisage would clearly require more.
One way to achieve this would be through the compulsory purchase of farmland at a sensible multiple of its agricultural value – say three or four times – which would give farmers a very good profit but not the lottery-winning values currently ascribed to development land.
Sigh. And that\’s just so Ritchienomics too.
If you make land with planning permission cost £30k a hectare (which is that three or four times ag value) then you don\’t need the rest of the plan nor the QE cash. Because people would be falling over themselves to purchase and build upon such land. It normally costs £1 million or something ghastly like that. Lowering the costs of housebuilding doesn\’t lower the price of houses of course: that\’s set by the interplay between supply and demand. But if builders can see an extra £970,000 profit out of each hectare of land you can indeed be sure that they\’ll build more. And that increase in supply will bring prices down in time.
All of the rest of the plan is therefore not needed. Just by lowering the price of planning permissioned land we\’ll have created the incentive to build. Voila, problem solved!
Which brings us back to the Worstall Plan. Why don\’t we just lower the price of building land by issuing more permits? And thus solve the housing problem in one fell swoop?