Plausible policies but irrelevant in the real world!

There are some policy proposals out there which sound quite plausible yet do not provide useful solutions. Very often these proposals are mooted by various groups and some unfortunately make it into official policy. So lets look at some.

 

Building more dwellings will reduce house prices

Sounds a good common sense idea, everyone has heard of supply and demand and its role in determining price.  However, in the real world price setting is not as simple as that and with regard to housing its pretty irrelevant as house prices are largely determined by the impact of interest rates on asset values and earnings.

 

Building more houses near railway stations is good for transport and housing

What’s wrong with this you may well ask?  Surely more people travelling by rail is a good thing with less people using their car to get to work?  Yet most people who live near stations never need or do travel by rail. The proposal is also based on the false premise that we need the extra houses!

 

Reducing short distance car trips is a sensible idea

“But in many cases it may be possible to avoid using the car altogether. In many countries, even short journeys which could often be made on foot or by bike are usually made by car. In England, for instance, around 60% of 1-2 mile trips are made by car.”  [https://www.bbc.co.uk/future/article/20200317-climate-change-cut-carbon-emissions-from-your-commute].

 

Although some car trips could be replaced by walking, it’s invariably impractical for a weekly shop. Its also deflects from the main goal which should be to reduce all car travel particularly by those who travel the most.

 

We have lots of undeveloped land

Supporters of more development use figures of between 8.6%-10.5% for developed or built-up land, while those arguing for more housing development often cite the figure of 1.3% of land used for housing itself.  [Figures for England].

 

But if we look at all the land, which is effectively developed, such areas cover 16.8% of the land surface with 83.2% being countryside either farmed, woodland or natural land.