IPPR attacks Barker

July 28, 2005
The Institute for Policy Research has said Barker has overestimated the number of houses needed to reduce house price inflation. The IPPR study, by Professor Glen Bramley of Heriot Watt University, found that an extra 59,000 houses would produce the same effect as the 141,000 Barker recommended. The report said: “The Barker review agenda does not seem an appropriate way of meeting housing need in the south east.” It added: “The significant disparity between these two figures would seem to call into question whether it is really possible for policy makers to set targets for output in the housing market to achieve a particular path for house price inflations.” The report also questioned whether there really was a housing crisis. “With incomes growing at around 2.5% per annum, it is unclear why the 2.4% to 2.7% rate of real house price inflation would create an overall problem for affordability.” Bramley did conclude that there is a significant need to increase new social housing. (The Guardian)

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