Government

(Redirected from Planning)

The UK government has a number of levers on the housing market:

  • It controls the terms of the Bank of England's mandate and the composition of the Monetary Policy Committee
  • Tax policy can be manipulated to favour home ownership
  • Planning can be restricted to artificially lower the supply of housing. However, the role of planners and developer can be blurred; developers can artificially lower the supply of housing by accumulating land with planning permission to form a 'land bank' to be used as a balance book asset, which can be used as a deposit against a loan for developments elsewhere and can be sold at a later stage. Land banks can be structured to block rival developers from an area and to avoid an oversupply of housing to support higher prices.
  • Rent controls can have a big effect on the housing market

See also:-