"Housing doesn't seem to function in the same way other assets do." Labour are promising to build 1.5M homes in the next 5 years. Housing journalist Vicky Spratt explains why this increased supply won't make homes any cheaper. emily m | Jon Sopel

A look at Labour's plan to fix housing, announced by Rachel Reeves earlier today:

@Victoria_Spratt @maitlis @jonsopel Hang on, why is subsidising demand through policies like help to buy considered a supply side measure here? Subsidising demand =/= expanding supply. It acts in precisely the opposite way! It contracts supply relative to demand!

@Victoria_Spratt @maitlis @jonsopel @Victoria_Spratt your example of help to buy is something that subsidised demand, right? It isn’t an example of increasing supply?

@Victoria_Spratt @maitlis @jonsopel I have found this highly technical chart which your housing journalist may wish to review

@Victoria_Spratt @maitlis @jonsopel Supply and demand absolute applies to the housing market.

@Victoria_Spratt @maitlis @jonsopel Austin disagrees

@Victoria_Spratt @maitlis @jonsopel Best part is when she says “increased supply won’t bring prices down, just look at help to buy.” Sheer genius.

@Victoria_Spratt @maitlis @jonsopel There are loads of examples of how building new homes reduces rents and prices. New Zealand, Austin, French policy from 2000-2015. Can we stop saying this ain't so. Yes, housing markets are complex (most because of regulation) but they still follow economic rules.

@maitlis @Victoria_Spratt @jonsopel Shes wrong. Prices won't come down until demand is met, when demand is being met then the prices will start to come down. Help to buy didn't bring prices down because they built so few.

@Victoria_Spratt @maitlis @jonsopel You think this because you ignore, or mitigate, the consequences of mass immigration; housing is subject to the law of supply and demand.