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Research Article

Land, housing and the British economy1

John Muellbauer* John Muellbauer*

Professor John Muellbauer is a Senior Research Fellow of Nuffield College and a Senior Fellow of the Institute for New Economic Thinking at the Oxford Martin School. He is a Fellow of the British Academy and of the Econometric Society. He is best known for his work on household economics, housing markets and on finance–real-economy interactions. He has worked with many central banks and the OECD and is a frequent contributor to CEPR’s VoxEU columns (https://cepr.org/about/people/john-muellbauer). He is heavily involved in policy debates. He regularly presents on housing market reform in the UK, including in the British Academy’s 2025 Keynes Lecture, and has proposed a Green Land Value Tax, a form of property taxation with global relevance.

john.muellbauer@nuffield.ox.ac.uk

Abstract

Many of the UK’s current economic and social problems, including its housing affordability crisis, can be traced to decades of land and housing policy failures. The role of land markets is strongly dependent on institutions, including land use regulation, financial regulation and property taxation. Transformative but deleterious changes to the institutional framework in the 1980s, that have persisted until recently, have resulted in high and volatile land prices (with several booms and busts in credit and house prices). The associated speculation diverted financial flows from more productive investment, damaging growth and competitiveness, and increasing financial instability risks. Policy remedies require a holistic package. This includes planning reform, land-value capture, expanding the social housing stock and reforming a dysfunctional property tax system.

Keywords

land marketsplanning reformsocial housinghousing affordabilityproperty taxation

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Research article

Normal View Dyslexic View

Land, housing and the British economy1

John Muellbauer* John Muellbauer*

Professor John Muellbauer is a Senior Research Fellow of Nuffield College and a Senior Fellow of the Institute for New Economic Thinking at the Oxford Martin School. He is a Fellow of the British Academy and of the Econometric Society. He is best known for his work on household economics, housing markets and on finance–real-economy interactions. He has worked with many central banks and the OECD and is a frequent contributor to CEPR’s VoxEU columns (https://cepr.org/about/people/john-muellbauer). He is heavily involved in policy debates. He regularly presents on housing market reform in the UK, including in the British Academy’s 2025 Keynes Lecture, and has proposed a Green Land Value Tax, a form of property taxation with global relevance.

john.muellbauer@nuffield.ox.ac.uk