Expert urges state to build houses

Private house-building alone will not produce enough new homes and will not solve Britain's complex housing crisis, according to the report by Islington Council's executive member for housing and development James Murray.

He argued that the government's "hands off" approach to home-building is not working as the market is failing to meet the challenges.

"The housing market is dysfunctional, riddled with problems that prevent it from operating," Mr Murray said.

"But more than this, the focus on supply at any cost ignores the complexities of people's housing needs and how to meet them."

The report calls for more investment in new social housing rather than spending on benefits to subsidise private rents and regulation of the private rental market.

It is the first publication released by the Centre of Labour and Social Studies (Class) since it officially launched in Parliament on October 31 as a think tank for left policy debate.

Responding to the publication Ucatt general secretary Steve Murphy told the Star: "There is insufficient social housing, first time buyers can't get on the property ladder, the private rental sector is unaffordable and it is often poor quality.

"Yet the coalition government's approach is to extend the right to buy, cut the social housing budget and urge housing associations to build for the private rental market.

"The housing needs of the nation have not been met. This is why Ucatt has consistently campaigned for large-scale investment in new-build social housing at genuinely affordable rents."