A better tax system, not subsidies, is needed to solve our housing problem

The Chancellor has announced £7bn of housing market subsidies to encourage property developers (including local authorities and housing associations) to deliver up to 400,000 additional affordable homes over the next five years. The twist is that the new homes will be aimed at the owner occupation rather than rental market. This is clearly good news for would-be homeowners and developers. But does it make long-term sense for the country?