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Opinion

A build-to-let revolution

A build-to-let revolution
September 6, 2012
A build-to-let revolution

When the coalition government first came to power, it held forth about devolving planning decisions to local communities. The property industry fretted that nimbyism would block all housebuilding. But in his 2011 Budget George Osborne unexpectedly recast the planning system as a "chronic obstacle to economic growth". Hardly a word has been said about localism since. Instead, the chancellor has repeatedly stressed the need to "get Britain building" - the name of yet another initiative.

But as the clamour for development has got louder, the figures have got worse. Housing starts in the second quarter were at their lowest for three years. Indeed, the weak construction industry has been largely responsible for this year's terrible GDP statistics: it shrunk by 4.9 per cent in the first quarter, dragging an otherwise positive performance into the red, and then by 3.9 per cent in the second quarter. Nor is the situation getting better - the latest purchasing-manager surveys suggest the slump continues. The government is desperate to get Britain building because the sector is almost single-handedly undermining its credibility for economic management.

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