Alex Morton

The ruckus over sending a high-speed railway roaring through some of Southern England’s most prized back gardens might be dominating the headlines. But another, separate row over planning is brewing. Behind closed doors, ministers are straining to develop a coherent plan to build the new houses that Britain – especially the South East needs – in a way that is politically feasible. Whitehall is wrestling with how to reform a planning system that has led to more expensive housing and offices, developments that are often ugly and cramped, and soaring costs for everyone – the government included. Housing benefit costs more than the Home Office and Ministry of Justice combined. A shortage of supply has been a big factor driving house prices.

Grant Shapps has impressed in the housing brief, arguing that house prices rising faster than wages is not a good thing (with which Policy Exchange’s report, Making Housing Affordable, agreed). He has probably been encouraged by the fact that some recent polls have shown even a majority of owners want prices to stop rising. Perhaps having your kids live with you until they are 40 just isn’t a popular option? More so, rising house prices only benefit those who downsize (now rare) or own multiple properties; and in the wider economy it mostly discourages productive investment and encourages borrowing – hardly good things.   But while Shapps’s aim is laudable, he needs to be clearer about how we get there.

Depending on who you read, the planned £400 a week cap on housing benefit is either comparable to Nazi concentration camps, death squads in Brazil, or ethnic cleansing in the Balkans Critics have ranged from the Mayor of London to the ultra Left. So it is worth taking a moment to get some perspective. Firstly, the general caps on housing benefit don't even impact on social tenants because they pay lower, subsidised rents, (though the £26,000 cap on the total amount of benefits per household might hit them). But for housing benefit claimants in the private sector outside London, less than 1% are affected by the cap. And even in London 9 out of 10 of private renters claiming housing benefit will be totally unaffected.