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You can debate the merits of the free market and how well it works, but a prerequisite is that you have some sort of competition between suppliers.
From the get-go it's flawed in the case of housing.
My default reflex definitely isn't to nationalise all the things, but I think we've reached a tipping point where there needs to be some sort of new state-backed housing policy along the lines of the old garden cities. Probably coupled with a compulsory purchase system.
Not when the same few developers are bribing council planning departments to allow them to buy up land and build the same shit everywhere. #nimby