David Cameron has announced that he'll extend the Right to Buy scheme to housing associations. That's the last thing we need. It's a supply problem, not an ownership problem and what would actually help is to build more new houses.
Here's the evidence in 6 charts.
1. House building is at its lowest level since the 1920s
Putting aside the fall during World War 2, house-building is now at the same level it was during the mid 1920s.
Let's break it down into building by private developers and house building sponsored by the government.
2. Government house building in particular has tumbled since the 1970s
You can see that public sector building has plunged since the 70s.
3. If you add in population growth, you see the same trends
If you add in population growth, it looks more stark. Barely 20 new homes were being built for every 100,000 people living in the country.
Unfortunately the ONS didn't have data for Great Britain prior to 1937.
Doesn't make much of a difference! House building has been on a long decline no matter which way you look at it.
4. Houses per family started falling in 2011
If we focus on the existing housing stock - are these enough houses per family?
Unfortunately in this case we can't go back to the 1920s as there isn't data available.
5. The rise since the 90s is down to people with second homes
According to Neal Hudson of Savills this is because "our consumption of housing has increased - more people own second homes."
He said "It’s also important to recognise that a household can only form if there is a home for them to move into. So if there’s not enough affordable homes then people either stay at home or live in over-crowded private rented homes for longer.
"Many older wealthier people that have benefited from house price rises have also increased their consumption of housing while those that cant afford to buy or rent aren’t able to form new households."
6. Home owners are getting older
The number of young home owners has inexorably declined. In 1991, 67% of those aged 25-34 were homeowners. By 2011/12, it was 43%.
By contrast, home ownership for those aged 45-65 has increased from 60% in 1981 to 75% in 2011/12.
7. More and more of these homes are being rented out, not sold
The ONS notes that the growth of home ownership throughout the 80s and 90s can be partly attributed to the introduction of Right to Buy.
8. And the ones that are being sold cost a fortune!
House prices have increased by 6.9% per year since 1980, on average.
The rising prices signal a rise in demand - which is not being met.
The number of households in the UK is set to grow - if we don't build more houses, the housing crisis will only get worse.
What should the government do about housing?
0+ VOTES SO FAR
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With thanks to Neal Hudson and the team at the Construction Products Association.
[Sources: Department for Communities and Local Government Live Tables on House Building, Live Tables on Dwelling Stock, ONS, ONS Housing and Home Ownership in the UK]