Build Now Or Pay Later?

A new IPPR briefing paper asks ‘If we are to increase housing supply, how are we to pay for it?’ 'Build now or pay later? Funding new housing supply' concentrates on three key ideas that the authors think hold particular promise – focused on institutional investment, the role of local authorities and recapitalising public spending in housing – as well as additional proposals around expanding the nascent Green Investment Bank into a true National Investment Bank and reform of the development industry. The report notes that housing looks low-yield and high-hassle to potential investors. However, it concludes that, with careful product design, these obstacles could be overcome for domestic insurance and pension funds. It argues that local authority pension funds, which currently have assets of £150 billion, offer the best prospect. Download a copy of the report from the IPPR website.