IN launching Labour’s local election campaign last week Ed Miliband decided to emphasise the need for reform of private renting and tackling the cost of living crisis. In raising this issue he has triggered a welcome debate on housing in Britain.  

House prices in England are rising fast and in London faster than ever — so much so that those lucky enough to own a property in the capital have seen house values rise by an average of £63,000 — about three times the earnings of the average Londoner. By definition, this is economic madness.

Outside London most areas are seeing much smaller increases in prices. The problem with this is that for too long British economic development has been based on ever rising property prices and thus an ever greater access to credit by those who own property, rather than lending being used to invest in sustainable manufacturing industry or real economic development.