Patrik Schumacher, the principal of Zaha Hadid Architects, has urged for a flexibility of minimum space standards, height restrictions, rent rations and rational density in an essay entitled "Only Capitalism can Solve the Housing Crisis", published for the right-wing think-tank the Adam Smith Institute. 

In a long essay, Schumacher defends that market-led adjustments should be allowed to make a decision on where and what type of housing is built. According to the architect, the provision of social housing is based on a "quasi-sicalist" regime in which is heavily exposed to state control. 

"The thesis put forward here argues that the so-called 'housing crisis' which plagues London (as well as other growing cities around the world) can only get worse the more politicians are trying to help via yet more state intervention. In contrast to the prevailing analyses and recipes, this essay argues that the current malaise cries out for free market solutions–it’s time for a capitalist revolution," argues Schumacher.

The provision of social housing is based on a "quasi-sicalist" regime

"This essay argues that the current malaise cries out for free market solutions–it’s time for a capitalist revolution. Since urban development is currently operating under the impositions of a quasi-socialist regime, a decisive shift towards an unencumbered free market system would indeed be revolutionary. The solution to the housing crisis lies in the denationalisation and depoliticisation of development rights in general and in the radical liberalisation of housing in particular."

"What is the root cause of the housing crisis? Why are we suffering a housing shortage while nobody has to worry about a banana shortage, a bicycle crisis, or an automobile shortage? By the way, in socialist countries all of the above are endemic."

He adds that "The explanation is that the housing market, in contrast to the bicycle market, is highly politicised (it suffers from massive state interference which prevents this market from functioning)."

"Homes are much more vital and existential than bicycles, so it is all the more important that we fix the housing market. We need to break these fetters and set the housing market free. In fact, we need to set the whole real estate market free and allow all urban development decisions to be determined by economic rather than political criteria."

Supplied restrictions cause the housing affordability crisis 

Patrik Schumacher's essay recalls his previous statements about social housing in the "Housing as architecture" debate, held at the World Architecture Festival in 2016. In his speculative lecture, Schumacher had called for the scrapping of social housing and the privatisation of public space and he had declared 8-point manifesto to strive against housing crisis.

In his new essay, the housing provocative architect anatomises the problems of housing crisis and density, arguing that too many restrictions and space standards cause "housing affordability crisis."

"The housing affordability crisis is due to supply restrictions," says Schumacher.

"There are far too many restrictions on land use. Land use regulation in the UK takes the form of absolute growth constraints such as green belts as well as density and height restrictions. In addition, the planning system prescribes and fixes designated land use categories for all land parcels," he adds.

Hight and densitiy restrictions

"Height and density restrictions are the next impediment we should look at. Here externalities like rights of light and traffic pressures have to be considered, but I am convinced that a free market would discover much more viable trade-offs than current planning restrictions manage and without the high price increases they create," adds the architect.

He writes that the regulation of development rights can be overseen by property owners, adding that "I suggest that an organized association of property owners should set regulations."

"Voting rights could be distributed in accordance with the relative value of the respective holdings, analogous to shareholder rights in stock companies. Such a privately organized planning system (similar to how to many successful industry self-regulation initiatives operate) can be expected to maximize total social value, in contrast to our current political processes."

Space standards should be relaxed

The architect also insists on the relaxations of space standards as this provision totally excludes "a new lower-income group." Schumacher says: "In the current market situation, the most problematic of these impositions are the restriction of the number of small units allowed per development, and the imposed minimum unit sizes, especially for the smallest units."

"Currently studio flats below 38sqm are not permitted. Yet, units half that size, built at an earlier time, are rare and thus at the moment overpriced, hotly desired commodities, for rent or for sale. Lifting this prohibition would allow a whole new (lower) income group, which is now excluded, to enter the market. This move would both boost overall unit numbers and affordability."

The architect also criticises London Mayor Sadiq Khan over his "subsidised units" strategy as his provision creates "a vicious interventionist spiral." 

"Sadiq Khan seems intent on ramping up 'affordable housing'. He wants to see housing rationed according to political prerogatives, up to 50% of all new housing provision, which thereby makes the remainder (which has to cover the subsidies) all the more unaffordable. No wonder that the income eligibility threshold is ramped up continuously also. So-called ‘affordable housing’ creates a vicious interventionist spiral."

"By subsidising the residences of privately employed 'key workers' we only allow their salaries to be lowered, thus benefiting those who use their services. This might often be people who could, would and should pay more for these services. By subsidising public sector "key workers" we are further privileging a pressure group that seems already comparatively privileged. This is not only inefficient, but also unfair," adds Schumacher. 

Top image courtesy of Zaha Hadid Architects

> via Adams Smith Institute