The Bishop of St Albans took part in a debate on a report from the Select Committee on Intergenerational Unfairness on 25th January 2021, focusing on access to and provision of housing:
The Lord Bishop of St Albans [V]: My Lords, the decrease in the rates of home ownership for the younger generation is a major issue and not one of their own making. As this excellent report demonstrates, it is an important factor in addressing issues of intergenerational fairness. For many years, there has been a failure to supply housing adequately—an issue exacerbated by a cycle of stagnation fuelled by low market absorption rates and stalled developments.
The Letwin report suggests that one of the most important reasons for this is that developers will build new homes only at a rate that the market can absorb and that, by diversifying housing products, rates of absorption will increase. However, when I put down Written Questions to Her Majesty’s Government on this topic, never once has it been acknowledged that it might be in the interest of developers to land bank, as increased supply is likely to reduce house prices. While I believe that this has contributed to the lack of supply, I agree that low absorption remains a real issue. However, I do not think that diversification alone will solve it.
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