Monday, March 31, 2014

Governments force up housing costs

Housing affordability isn't my subject but it's a given that government is behind many problems perceived as market-created by the Left.

The following supports the theory that government-limited land supply and barriers to building are significant factors in poor housing affordability.

From the Institute of Economic Affairs Kristian Niemietz looks at the affordability of property in Germany versus the UK. is true that you could do a lot worse than being a tenant in Germany. I lived in various rental properties for six years there and found it to be a relatively tenant-friendly market. Perhaps the best ‘soft indicator’ for this is the fact that people there rarely talk about housing, whereas in London, the topic is constantly under discussion. Germany has consistently released more land for development than the UK, and has therefore consistently achieved higher levels of housing development (see Graph 1).... Germany has no green belts, no ‘Campaign to Protect Rural Germany’ and no National Trust. NIMBY hysterics are generally treated with the contempt they deserve.
 Graph 1: Dwellings completed per 10,000 inhabitants, UK vs Germany

 Graph 2: Ratio of average house prices to average incomes, UK vs Germany (1995 = 100)
 , cvomment.

1 comment:

brian_smaller said...

TO be fair, Germany has no National Trust because most of their treasures were flattened by 500lb bombs. They had to start from scratch for the most part.