London, as is also the case with other successful large metropolitan urban centres, is faced with a housing shortage problem that is exerting pressures on the middle income segment of the population. Plans and policies as enacted by the Mayor of London as well as the government, House of Commons, have not only acknowledged the depth of the problem, they have put forth recommendations, legislation and policy initiatives designed to correct the imbalances between housing availability, and affordability.
As stated by the Reading study, headed by Professor Geoff Meen, as well as studies conducted by the Office of the Deputy Prime Minister, resolving the problem represents a complex number of market variables that are constantly shifting.
One key variable is the cooperation of the private sector in building home types within the market that are skewed at the entire range of income types. However, such an approach is filled with contradictory equations related to profit margins, investments, legislation, and competitive factors.
Governmental actions to address potential loopholes in the planning process have been implemented, such as PPGS3, which introduced new planning permissions restraints designed to reduce.land banking. However, these measures have been met with resistance on the part of the private sector for the obvious reasons relating to competition, investment sources, and market dynamics. An.Open Letter as generated by London Fist (2007) seemingly provides the potential for a solution. It suggests the formation of joint venture partnerships between the private sector and government to plan out area development together.
The mutual cooperation of both parties would be in the public interest as well as include in the planning process the two forces having the ability to address the problem in a meaningful manner. The documentation provided in this examination supports such an approach, as it refocuses efforts of government, and business on planning as the means to address the market imbalances in affordability and supply.