Tuesday, July 15, 2008

15 myths behind housing crisis in Britain (Part-1)

Too few new homes are being built in Britain to meet a combination of rising demand and the need to replace crumbling existing housing stock. The consequences are astronomical house prices and a generation struggling to afford any kind of a home. Anti-development campaigners and government policy are holding back the house-building programme so desperately needed. Here, James Heartfield, author of Let’s Build! Why We Need Five Million New Homes in the Next 10 Years, tackles the many myths about Britain’s housing crisis.

1) The government is concreting over the countryside When polled, people think that around one half of Britain is bui
lt up, one half countryside (1). That number is wildly off-target. The real number is one-tenth built up, nine-tenths not. There is no threat to the countryside. Just imagine for one moment, you could double - yes double - the number of homes in Britain, and still the countryside would cover four times as much land as the towns and cities. Of course, there is no need to double the number of homes. I estimate that we need another five million, which is to say about 20 to 25 per cent more homes than we have now. In fact, less than one per cent of land goes to homes every 50 years (2). 2) The ‘green belt’ is being worn away Between 1979 and 1993, the green belt - the undeveloped area surrounding cities - doubled in size. Since 1997 it has grown by 64,000 acres. Today, the green belt covers around 13 per cent of England. Far from shrinking, the land area that is protected, including green belts, national forests, areas of special scientific interest and so on, is expanding decade by decade as more and more farmland is retired from use. If just a small proportion of this land were earmarked for development, then we could have enough homes for everyone. 3) Britain is overcrowded There are more people per acre in Britain than in America, Africa and Australia, but less than in Holland or Belgium. Britain, though, is by no means overcrowded. Its cities are getting a little denser than they used to be, because of the policy that stops us building new homes in the countryside. In absolute terms, we have plenty of space. What people generally mean when they say that Britain is overcrowded is that they feel distaste towards the kind of people they see around them.

4) Too many homes are being built The number of homes being built is at an historic low - its lowest since the Second World War. The Campaign to Protect Rural England (CPRE) disputes this fact, saying that more have been built since construction reached its absolute lowest in 2001. But the small increase in new homes being built still leaves us way below the levels of previous decades. House completions in the UK have fallen from over 400,000
per year in the late Sixties to well under 200,000 per year in the current decade. It is not enough.

UK house completions (thousands)
source: Office of National Statistics

5) More homes are being built, now that the government has acted Top-down hectoring did whip up some new building, but this small increase has not been maintained. In the year to June, completions were only up by two per cent, but more alarmingly, new starts are down by eight per cent (3). The trouble
with the government proposals in this area is that they generally create more barriers to development, even when they say they are liberalising.



6) Enough homes are being built Almost every report gets this wrong, because they fail to take into account the fact that houses have to come down, as well as being built. It is no good counting the new builds and thinking that they are a running total. Over time, even the best-built homes must come down. The CPRE assumes that in England, with a housing stock of 21million, just one million homes will be demolished every 40 years. At that rate, it would take 840 years to replace Britain’s housing stock. Does anyone really believe that all the houses built today will stand for 840 years? (4) It would be more realistic to assume that houses would stand for 100 years, in which case in England alone we need to build 210,000 homes just to replace the existing stock, before considering the additional demand. In fact, completions in England have not been higher than 167,000 in the past 10 years.

7) We can build houses to last The CPRE says it does not matter that Britain’s housing stock is the oldest in Europe: it just reflects the fact that Britain industrialised earlier. But the reason that Britain’s housing stock is ageing is because it is not being replaced. We are sweating dilapidated housing. Not demolishing older homes is the way that the shortfall in new homes being built is absorbed. But every year that we fail to build enough houses to retire the old ones, the housing stock gets more run down, damp and dangerous.

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