Radomir Tylecote writes for CapX
“Today, Jacob Rees-Mogg and I have released a new paper at the Institute of Economic Affairs, Raising the Roof: How to solve the United Kingdom’s housing crisis, which lays out a strategy to get more people on the housing ladder.
“The first thing to do is release land. In the 1980s, the Right to Buy applied to state-owned housing. With a great deal of land still in state ownership, a new right to buy government land, or ‘Reverse Compulsory Purchase Order’, can let people demand its sale.
“Next, cutting taxes. Stamp Duty can be cut, then devolved. Capital Gains Tax on shares could be cut (it inflates house prices), and VAT on restoration abolished. All have a distortionary effect on the housing market.”In our neighbourhoods, we should put the wisdom of crowds to work, and let architects design homes people actually want. Individual city streets, or rural villages, could vote themselves ‘permitted development rights’ to extend and replace their houses (up to a number of storeys), using a ‘style guide’ if they like.”
Read the full article here.