The OECD said a lack of housing is holding back Britain’s growth and that planning rules in the UK are too strict.
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Global economic think tankThe Organisation for Economic Co-operation and Development (OECD)has written a report calling for more homes to be built on green belt land.
The OECD said alack of housing is holding back Britain’s growth and that planning rules in the UK are too strict.
Indeed, the OECD even suggests that the government should relax planning restrictions in green belt areas to help deal with the housing crisis and height restrictions should also be lessened.
The report also suggests that more training would help the country which is regards as having a lack of skills and poor investment in infrastructure and research and better education would enhance productivity.
Better provision of social housing is also needed, according to the report which explains that the government cannot afford to let up on reform to ensure that the gains of economic growth benefit the vast majority of citizens.
The report said: "Higher housing supply would improve labour mobility and reduce skill mismatches, resulting in additional income gains. More investment in research and development and higher infrastructure provision would support technical progress and boost the capital stock, also enhancing progress in living standards."
It sets out detailed recommendations for boosting housing supply including a relaxation of regulatory constraints to release more land for housing, in particular by thoroughly reviewing the boundaries of protected areas of the green belt and by easing skyline restrictions.
And it calls on the country to enhance the provision of social housing where private sector activity is insufficient to promote greater equity in housing access.