The UK housing minister has argued that house prices will fall in the long term as the government encourages developers to compete on volume and deliver more homes.
A housing strategy due in the coming weeks will encourage alternative business models to those used by large developers, as well as a bigger role for the state.
Matthew Pennycook, housing minister, told the FT: “The private market as it’s currently constituted will not on its own initiative, even if it’s highly competitive, produce sufficient housing to meet overall housing need.”
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