Originally posted on October 14 on Inside Edge 2, my blog for Inside Housing
How does somewhere that was built to solve the housing shortage end up being in the middle of one?
The place in question is Peterborough in Cambridgshire but events there in the last month resonate well beyond the city. Seen admittedly from the outside, this is the UK housing crisis in ten steps.
1) Build a new town
Peterborough was designated as a new town in 1967 to accommodate population overspill from London. Four new townships were added to what was already a Cathedral city, boosting the population from 83,000 to 190,000 over the last 40 years. The key, according to the former head of the development corporation Wyndham Thomas, was the acquisition of land at existing use values with debt repaid from finance generated by increased land values.
2) Watch the population grow
Housebuilding has failed to keep pace with a rising population in the south and east of England in general. In the case of Peterborough in particular add high levels of immigration. Cities Outlook 16, the regular survey by the Centre for Cities, shows that Peterborough was the third fastest-growing city in the UK for population with an annual growth rate of 1.5% a year between 2004 and 2014. The housing stock grew by the fourth fastest rate in the country between 2013 and 2014 but the rate was 1.1%.