The UK's housing problem

Five charts to start your day

In the 1960s, local authorities were the biggest homebuilders, playing a crucial role in addressing the post-war housing crisis. Large-scale council housing projects were common, resulting in an unprecedented surge in completed dwellings.

However, as we moved into the 1980s, things began to change. Government policy shifted away from public housing and local authorities drastically cut back on building. Instead, private developers became the primary source of new homes. The problem is, they aren’t building enough. The overall number of houses being built has continued to fall short of demand.

Since this transition, successive governments have struggled to meet housebuilding targets. The impact of reduced public sector building, combined with increasing constraints on private developers, has led to decades of under-delivery.

Today, house prices are soaring, with supply nowhere near keeping up with demand. It’s clear that without bold, large-scale initiatives like those seen in the 1960s, the UK’s housebuilding recovery remains elusive.

Coming up:

• Gold ETFs see outflows despite gold prices rising

• Home equity in the US has become a massive store value

• There's been explosive growth in private debt

• Credit card and auto loan defaults surge in 2024

If you like the sound of that line up, this is usually a paid newsletter. You basically get all my best ideas daily. Hit the subscribe button if you are interested and this will be sent to your inbox daily.

---