HOUSING TO 2001 - CAN BRITAIN DO BETTER

Demographic and economic changes are likely to be favorable to the U.K . as 2001 approaches. Population pressures are easing, and the economy is recovering sharply. But constraints on public spending will remain . The U.K. housing system is costly and appears to boost prices more t han output, reinforcing macroeconomic instabilities. Its key limitatio n is the lack of an adaptive rental sector-social or private. Policy h as been too focused on maximal rather than sustainable homeownership. What Britain needs most is a new vision that encompasses both enhancin g economic flexibility and addressing the problems of inequitable inco me distribution and urban decay. While emphasizing homeownership and c ompetition as the pillars of U.K. housing policy, the article sets out the importance of producer subsidies and a renewed emphasis on rental housing. Some organizational reforms are proposed. Britain can do bet ter in housing-more thought, not more government money, is the key to progress.