Alex Marsh, Professor of Public Policy at the School for Policy Studies urges a systematic, urgent, and holistic approach to thinking through issues related to housing, care, and ageing
When we think about the financial aspects of housing, care and ageing it is essential to approach the issues holistically and to embed our understanding of the housing system in broader developments across a range of policy areas. These include developments in education policy affecting student debt levels, responses to changes in the labour market, pensions policy, social security policy, and broader macroeconomy policy. Earlier this year, for example, the FT reported on some ECB analysis arguing that Eurozone quantitative easing was responsible for fueling housing market bubbles in a number of countries (paywall), including the UK.
Policy in all these areas — and more — is reflected in the way in which the housing market behaves. And the way in which the housing market behaves is, in turn, reflected back into these other policy areas. Holding on to these interconnections is crucial.
Some would argue that the UK housing system is fundamentally broken. Others wouldn’t want to go quite that far. But many would agree that the system is decidedly unwell. The recent Foresight report by Michael Edwards rightly argues that we need to recognize that the problems are multidimensional and the solution therefore needs to be multi-faceted. We face acute short-term p
roblems triggered by the Global Financial Crisis (GFC) layered on top of long-term problems generated by the unique combination of characteristics of UK housing market and Westminster housing policy. Continue reading