The Key Ideas

#47 Make the control of house prices a national priority

An important way that the housing company (see part #34) would create better housing security would be by controlling house price rises. Rising house prices are both a major social problem (housing insecurity, poor quality of house design and build, cost of living, inability of younger generation to get access to housing) and a major economic problem (driving inequality, acting as a drag on innovation as employees are 'trapped' in specific jobs and locations by mortgages, exposing the economy to very substantial risk of housing bubbles and crashes). Over the last 20 years in Germany, house prices have not risen at all in real terms and this is an important part of their economic and social success. In fact, one of the reasons me-first politicians give for not building public rental housing is that it would slow down house price rises and reduce the ability of property speculators to make money on housing bubbles. A substantial increase in housing supply in the public rental sector would have a real impact on rising house prices, stabilising the housing market and creating better security for everyone.