Report calls for radical change to planning despite welcome for NPPF

May 1, 2012
The Institute of Economic Affairs has called for the thorough liberalisation of the planning system to address the UK housing affordability crisis.<br> <br> A new report from the think tank, published just days after most commentators welcomed the publication of the new National Planning Policy Framework, says that the NPPF does not address the fundamental flaw in the planning system – that the current incentives encourage nimbyism. "The combination of a restrictive planning system and an over-centralised tax system should be addressed so that local residents obtain the advantages of development," recommends the report entitled Abundance of land, shortage of housing.<br> <br> Author Kristian Niemitz says that house prices in the UK have soared since 1975, rising much quicker than in other countries such as the USA and Germany, and argues that this is due to planning restrictions. The main difference between the UK and its north western European neighbours is not in demographics, he says, but in completion rates of new dwellings.<br> <br> IEA editorial director Prof Philip Booth said: "If the government wants cheaper housing it needs to have the courage to change the system so that development benefits local people who currently only face the costs. For …

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