David Boyle on curbing house price inflation

A piece of wisdom from my favourite Liberal Democrat thinker.

David Boyle writes on the Radix website:

Politicians of all parties have colluded in the idea that house price inflation has been caused by our failure to build enough homes. All the evidence suggests that it was actually too much money pumping into the housing market which caused the ruinous leaps that are excluding middle classes and working classes alike from home ownership. 

However many homes we build, we will not keep up with the almost infinite demand for housing investment from the Far East.

His remedy?

Follow New Zealand’s lead and exclude foreign buyers from the housing market. And quickly.

Read more about the New Zealand experience.